Ajaokuta Steel Company Limited
Nigeria's incomplete steel dream — the largest integrated steel complex in sub-Saharan Africa.
The Ajaokuta Steel Company Limited is an integrated steel plant located on 24,000 hectares in Kogi State, Nigeria. Originally constructed by the Soviet firm Tyazhpromexport starting in 1979, the plant was designed to produce 1.3 million tonnes of liquid steel annually using blast furnace technology. Despite reaching approximately 98% mechanical completion, the plant has never achieved sustained commercial production due to decades of political mismanagement, contractual disputes, and funding shortfalls. As of 2025, the Nigerian government has initiated renewed efforts to complete and commission the facility through international partnerships.
- 01Produce 1.3 million tonnes per annum of liquid steel for domestic construction and manufacturing sectors
- 02Reduce Nigeria's $3.3 billion annual steel import bill by substituting domestic production
- 03Supply long products including billets, wire rods, and reinforcement bars for infrastructure development
- 04Create over 10,000 direct jobs and catalyse industrialisation of the Kogi State region
- 05Establish Nigeria as a primary steel producer in West Africa reducing regional import dependency
- 06Develop downstream steel fabrication industries using Ajaokuta output as feedstock
1979 · completed
Construction Begins
The Nigerian government signs a contract with the Soviet firm Tyazhpromexport to build the integrated steel plant. Construction commences on the 24,000-hectare site along the Niger River.
1983 · completed
First Rolling Mill Commissioned
The light section rolling mill is commissioned and produces its first steel products using imported billets, demonstrating partial capability of the downstream facilities.
1994 · completed
Construction Effectively Halted
Chronic funding shortfalls and political instability lead to virtual cessation of construction activities. The plant is reported at 98% mechanical completion but key systems remain unfinished.
2004 · completed
Global Infrastructure Concession
The Nigerian government grants a 10-year concession to Global Infrastructure Holdings (Solgas) to complete and operate the plant. The concession is later terminated in 2008 amid disputes.
2020 · completed
Renewed Federal Government Initiative
The Nigerian government appropriates fresh funds and begins technical audits of the facility to determine the scope of work needed for completion. Multiple international firms express interest.
2025 · in progress
Completion Partnership Negotiations
Ongoing negotiations with international partners including firms from Russia, China, and India to finance and complete the remaining work. Target commissioning timeline remains under discussion.
Raw Material
Iron Ore Supply
Designed to use iron ore from Itakpe deposits in Kogi State, located approximately 60 km away and connected by a dedicated rail line operated by the National Iron Ore Mining Company.
Raw Material
Coking Coal
Metallurgical coal for coke production to be sourced from international suppliers and potentially from Nigerian coal deposits in Enugu State.
Processing Equipment
Blast Furnace Complex
Two blast furnaces with combined capacity of 1.3 million tonnes per year of pig iron. Requires completion of auxiliary systems before commissioning.
Processing Equipment
Rolling Mills
Three rolling mills — light section, medium section, and wire rod — for producing finished steel products. The light section mill has been test-operated in the past.
Energy Infrastructure
200 MW Captive Power Plant
Gas-fired power plant to supply the steelworks with electricity. Currently non-operational and requires rehabilitation.
- Blast furnace ironmaking technology with two 1,000 cubic metre furnaces designed by Tyazhpromexport
- Basic oxygen steelmaking (BOF) converters for primary steel production from pig iron
- Continuous casting machines for producing billets and blooms from liquid steel
- Light section rolling mill, wire rod mill, and medium section mill for finished product manufacturing
- Coke oven battery with by-product recovery plant for converting coal into metallurgical coke
- Sintering plant for agglomerating iron ore fines into blast furnace feed material
What it means for the community
If completed, Ajaokuta Steel would save Nigeria an estimated $3.3 billion annually in steel imports and create over 500,000 direct and indirect jobs. The plant would anchor an entire industrial corridor in central Nigeria, catalysing downstream industries in construction, automotive, and manufacturing. Despite over $8 billion invested to date, the plant remains one of Africa's most prominent examples of stalled industrialisation, making its potential completion a transformative economic event.
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- Federal Government of Nigeria through the Ministry of Mines and Steel Development
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