The Nigerian Society of Chemical Engineers (NSChE) has issued a strong appeal for the revitalization of the Ajaokuta Steel Company, highlighting that Nigeria incurs approximately $4 billion in annual losses due to steel imports. The organization pointed out that such reliance not only drains foreign reserves but also prevents the creation of millions of jobs and stalls industrial development.
During the NSChE’s 56th Annual Conference held in Port Harcourt, the Society’s president, Bayo Olarewaju-Alo, emphasized the importance of reinvigorating the steel complex through a transparent, private-sector investment strategy. He noted that Nigeria’s current steel demand is around 10 million tonnes, while domestic production sits at just 1.2 million tonnes, primarily from scrap-based sources. He characterized the current situation as a considerable economic setback.
Olarewaju-Alo underscored the potential economic benefits of a functional Ajaokuta Steel Company, arguing that reviving the facility could lead to substantial savings in foreign exchange, job creation, and enhanced infrastructure. He stated that the impact would extend beyond traditional employment, affecting various sectors including mining, manufacturing, and transportation.
To achieve these goals, he advocated for the majority private ownership of Ajaokuta by a Nigerian consortium, alongside strategic international partners, while ensuring the government retains a minority stake. The NSChE president cautioned, however, that merely changing ownership would not suffice. He stressed the necessity for investors to secure reliable access to essential resources like iron ore and natural gas, as well as transportation and financing networks.
The Society recommended a structured plan for privatization, including competitive international bidding and a phased rehabilitation program to restore existing facilities. They also urged a focus on advanced steel production technologies and the utilization of Nigeria’s natural gas resources as potential competitive advantages.
The conference, themed ‘Advancing Nigeria’s Industrial Revolution Through Gas Valorisation and AI-Driven Engineering Imperatives,’ addressed the integration of artificial intelligence in manufacturing and the urgent need for improved gas infrastructure. The NSChE called on the federal government to translate the Ajaokuta revival agenda into a productive industrial reality.
