Ajaokuta Steel Company Limited

The Ajaokuta Steel Company Limited is an integrated steel plant located on 24,000 hectares in Kogi State, Nigeria. Originally constructed by the Soviet firm Tyazhpromexport starting in 1979, the plant was designed to produce 1.3 million tonnes of liquid steel annually using blast furnace technology. Despite reaching approximately 98% mechanical completion, the plant has never achieved sustained commercial production due to decades of political mismanagement, contractual disputes, and funding shortfalls. As of 2025, the Nigerian government has initiated renewed efforts to complete and commission the facility through international partnerships.

1. 01Produce 1.3 million tonnes per annum of liquid steel for domestic construction and manufacturing sectors
2. 02Reduce Nigeria's $3.3 billion annual steel import bill by substituting domestic production
3. 03Supply long products including billets, wire rods, and reinforcement bars for infrastructure development
4. 04Create over 10,000 direct jobs and catalyse industrialisation of the Kogi State region
5. 05Establish Nigeria as a primary steel producer in West Africa reducing regional import dependency
6. 06Develop downstream steel fabrication industries using Ajaokuta output as feedstock

1. 1979 · completed

   Construction Begins

   The Nigerian government signs a contract with the Soviet firm Tyazhpromexport to build the integrated steel plant. Construction commences on the 24,000-hectare site along the Niger River.

2. 1983 · completed

   First Rolling Mill Commissioned

   The light section rolling mill is commissioned and produces its first steel products using imported billets, demonstrating partial capability of the downstream facilities.

3. 1994 · completed

   Construction Effectively Halted

   Chronic funding shortfalls and political instability lead to virtual cessation of construction activities. The plant is reported at 98% mechanical completion but key systems remain unfinished.

4. 2004 · completed

   Global Infrastructure Concession

   The Nigerian government grants a 10-year concession to Global Infrastructure Holdings (Solgas) to complete and operate the plant. The concession is later terminated in 2008 amid disputes.

5. 2020 · completed

   Renewed Federal Government Initiative

   The Nigerian government appropriates fresh funds and begins technical audits of the facility to determine the scope of work needed for completion. Multiple international firms express interest.

6. 2025 · in progress

   Completion Partnership Negotiations

   Ongoing negotiations with international partners including firms from Russia, China, and India to finance and complete the remaining work. Target commissioning timeline remains under discussion.

• Blast furnace ironmaking technology with two 1,000 cubic metre furnaces designed by Tyazhpromexport
• Basic oxygen steelmaking (BOF) converters for primary steel production from pig iron
• Continuous casting machines for producing billets and blooms from liquid steel
• Light section rolling mill, wire rod mill, and medium section mill for finished product manufacturing
• Coke oven battery with by-product recovery plant for converting coal into metallurgical coke
• Sintering plant for agglomerating iron ore fines into blast furnace feed material

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• Federal Government of Nigeria through the Ministry of Mines and Steel Development