Development economist Banji Oyelaran-Oyeyinka has attributed the long-standing failure of the Ajaokuta Steel Company to ongoing issues of poor governance, systemic corruption, and inconsistent policy direction. Speaking at the Virtual International Conference on Ajaokuta, he advocated for the full privatization of the steel complex, suggesting that majority ownership should be transferred to a capable Nigerian consortium in partnership with experienced global operators.
Oyelaran-Oyeyinka pointed out that Nigeria has invested approximately $10 billion in the Ajaokuta project over the years without producing a single ton of steel. Meanwhile, the country continues to spend around $4 billion annually on steel imports. He described the facility in Kogi State, which was designed to produce 1.3 million tonnes of steel per year, as “a monument to unrealized potential” and a symbol of decades of policy failure. He emphasized that if the plant were operational, it could meet a significant portion of domestic demand and save the country billions in foreign exchange.
Drawing comparisons with industrial powerhouses such as China, India, and South Korea, Oyelaran-Oyeyinka highlighted that strategic investment in steel production was crucial to their economic growth. He warned that Nigeria risks further economic stagnation without decisive action. Reiterating his position, he stressed that reviving Ajaokuta could generate up to $14 billion annually for the economy, save nearly $1 billion in foreign exchange, and create over 70,000 jobs. “The time for hesitation has passed,” he stated, urging the government to act swiftly to reposition the steel sector as the backbone of Nigeria’s industrial development.
Conceived in the 1970s, the Ajaokuta Steel Company has remained largely dormant despite numerous attempts at revival, underscoring the urgent need for structural reforms in Nigeria’s industrial policy.
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