A development economist, Banji Oyelaran-Oyeyinka, has attributed the decades-long failure of the Ajaokuta Steel Company to persistent issues of poor governance, systemic corruption, and inconsistent policy direction.
Speaking at the Virtual International Conference on Ajaokuta, Oyelaran-Oyeyinka called for the full privatization of the steel complex, recommending that majority ownership be transferred to a capable Nigerian consortium working in partnership with experienced global operators.
According to the economist, Nigeria has invested up to $10 billion in the Ajaokuta project over the years without producing a single ton of steel, while continuing to spend approximately $4 billion annually on steel imports. He described the facility in Kogi State—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 noted that if operational, the plant could meet a significant share 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 emphasized that strategic investment in steel production was pivotal to their economic rise. 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 said, urging the government to act swiftly to reposition the steel sector as the backbone of Nigeria’s industrial development.
The Ajaokuta Steel Company, conceived in the 1970s, has remained largely dormant despite repeated attempts at revival, underscoring the urgent need for structural reforms in Nigeria’s industrial policy.
