THE GUARDIAN
The Ajaokuta Steel Project was conceived to be bedrock of Nigeria’s industrialisation. As an integrated steel plant, it was expected to lay the foundation for Nigeria’s industrial drive. Since 1979 to date, however, the project has not distilled anticipated liquid steel. Despite gulping billions of dollars, the prodigal venture has been mired in high stake politics, monumental corruption and stuck in the mud. For past administrations and those to come, the Ajaokuta sob story will be retold with new promises of how to awaken a giant that never was. FEMI ADEKOYA writes.
The story of Ajaokuta is not new, but the promises of revival are often renewed with every political dispensation. The same promise was made by President Muhammadu Buhari’s administration, which, however, is still dreaming of reviving the steel plant before leaving office in roughly five months.
Like Nigeria’s loss-making refineries, Ajaokuta Steel Complex falls in the grandiose of projects that may never be efficient even when revived going by the developments in global value chains and Nigeria’s peculiar fiscal environment.
Notwithstanding the drama and intrigues behind the redemption songs for the steel complex, the reality of helplessness came to bear with the war in Ukraine reflecting how Russia might be unable to help in reviving the steel complex.
Russia’s Tyazhpromexport built the plant, which was incorporated in 1979. The steel mill reached 98 per cent completion in 1994, with 40 of its 43 plants having been built before it got stuck, with the remaining two per cent for external infrastructure like waterways and viable ports.
Despite the regular budget and allocation of at least N25.44bn to Ajaokuta Steel Company Limited from 2016 to 2023, the company is yet to commence full operations 42 years after, with government making failed attempts at privatisation and concession.
New optimism, same result
INDEED, in October 2019, President Muhammadu Buhari, and Russia’s Vladmir Putin met at the Russia-Africa Summit in Sochi and agreed to revive the uncompleted Ajaokuta steel mill.
Connect with us on our socials: