Africa’s richest man, Aliko Dangote, has cast doubt on the possibility of reviving Nigeria’s long-abandoned Ajaokuta Steel Company, describing it as an outdated project that can no longer meet the needs of a modern economy.
In a video shared on TVC’s X handle on Tuesday, the President of the Dangote Group stressed the importance of steel for national development but dismissed the feasibility of Ajaokuta’s revival.
“There is no nation that you can build without a steel industry. But honestly, Ajaokuta will not work. We can keep deceiving ourselves and being passionate about it, but it’s not possible,” Dangote said.
He likened attempts to resuscitate the plant to trying to compete with obsolete technology in today’s fast-paced world.
“It’s like comparing Volkswagen Igala with a modern Kia. Things have changed. Carrying Ajaokuta is like going to a graveyard to bring a dead person to run 100 metres. Totally impossible,” he added.
Ajaokuta’s Chequered History
Located in Kogi State, Ajaokuta Steel was initiated in 1979 but has never operated at full capacity despite huge investments. It has remained moribund for over two decades, becoming a symbol of Nigeria’s unfulfilled industrial dreams.
- In 2008, the Umaru Yar’Adua government revoked a concession deal with an Indian firm, sparking a long-running legal dispute.
- By 2022, Nigeria paid $496 million in settlement over the dispute.
- Successive administrations have made repeated pledges to revive the plant, with the most recent being a 2023 agreement with a Russian consortium for rehabilitation and operation.
Government’s Push vs. Dangote’s Reality Check
Upon assuming office in August 2023, Minister of Steel Development Shuaibu Audu vowed to revive Ajaokuta, promising a roadmap for the steel sector. But Dangote’s blunt verdict suggests the facility may no longer be viable in today’s industrial landscape.
His remarks reignite debate over whether Nigeria should continue pouring resources into Ajaokuta or instead pivot toward modern steel production solutions.
