By Isqil Najim
Nigeria’s long-standing ambition to become a major steel producer has been held back by a history of policy instability, Engr. Temitayo Ogedengbe revealed.
Engr. Ogedengbe, a senior lecturer at Department of Mechanical Engineering, Nile University, was speaking on the topic, “From Rust to Resurgence: Building a Sustainable Steel Industry for Nigeria’s Future,” as Keynote Speaker at the 2025 Engineering Week of the NSE Bwari Branch in Abuja.
Dr Ogedengbe noted that while Nigeria’s steel industry is vital for the country’s economic growth, with the potential to contribute to industrialization, job creation, and GDP, the sector has been hampered by various issues, including infrastructural deficiencies, a lack of funding, and inconsistent government policies.
He lamented the current state of major state-owned plants that has left the country as a net importer of steel, with domestic production in 2021 standing at a mere 950,000 tonnes—a fraction of the output from regional competitors like Egypt and South Africa.
This failure can be traced to a single factor. “Policy instability has been a major setback,” he stated. He explained that “frequent policy reversals and inconsistent implementation” have plagued key projects for decades.
He said that Ajaokuta Steel Company has been stalled for over 40 years due to new administrations renegotiating old agreements, leading to “repeated restarts” and a loss of over $8 billion in public funds.
He listed other steel companies in the country: Delta Steel Company, located in Aladja, Delta State, with a capacity of 1 million tons of liquid steel per year but facing operational inefficiencies and financial constraints; Katsina Steel Rolling Mill, which is non-operational despite a capacity of 100,000 tons of rolled products annually; and the Jos Steel Rolling Mill and Oshogbo Steel Rolling Mill, which are also non-operational. Private companies like African Foundries Limited and Sunflag Steel Nigeria Limited which have capacities of over 300,000 tons and 150,000 tons respectively are operational
He highlighted some of the key factors affecting the industry, which include: Infrastructural Deficiencies, where a lack of sufficient funding from both the government and private sectors has stalled progress; frequent policy changes and a lack of a clear steel development strategy; reliance on imported steel undermining local production efforts; and outdated technology and a lack of technical expertise impeding efficient production.
To address these challenges, he suggested adopting a “Triple Helix Model” involving the government, academia, and industry. The government should focus on policy stability, revamping Ajaokuta realistically, and providing infrastructure and energy support. Academia’s role involves skills development, research and development, and policy advisory. The industry should contribute through investment, job creation, and adopting new technology.
To realize its full potential, Dr. Ogedengbe called for “Prioritizing the completion and operationalization of Ajaokuta Steel could provide a significant boost, alongside promoting the use of locally produced steel to reduce import dependence.”
He also recommended investing in training and development to enhance technical expertise within the industry; upgrading technology and maintaining existing infrastructure to ensure efficient production; establishing a stable and supportive policy environment to attract investments; and promoting the use of locally produced steel to reduce import dependence.
“A new Nigeria with a thriving steel industry is not just possible—it is inevitable, if we choose to build it together,” he concluded.
Earlier, the President, Nigerian Society of Engineers, Engr. Margaret Oguntala, represented by Engr Dayyabs Tijani, commended executive committee and all members of the Bwari branch for their tireless efforts in capacity building, noting that their continuous investment in professional development was both laudable and essential for Nigeria’s sustainable development. She stated further that this year’s conference theme was timely and highly relevant, emphasising the critical role of a stable policy environment in building a resilient steel industry.
Also speaking, the Chairman of the Nigerian Society of Engineers (NSE), Bwari Branch, Engr. Funbi Alonge, stressed that consistent policies and institutional stability are crucial to ensuring the sustainability of Nigeria’s steel industry. She added that Steel industry is crucial to Nigeria’s economy.
The NSE chair also acknowledged the support of patrons and fellows of the society, including Engr. Babakobi Mohammed, FNSE, FNIStructE; Engr. Henry Ikemefuna Obih, FNSE, FNIMechE; and Engr. Dr. Funmi Waheed-Adekojo, FNSE, who were present at the gathering.
Meanwhile, the Minister of Steel Development, Prince Shuaibu Audu, disclosed that imported steel products drained over $4 billion foreign exchange annually. He said the Federal Government had taken a significant step toward unlocking Nigeria’s economic potential by targeting $10 billion in direct investment in the steel sector by 2030.
According to him, despite the challenges facing the economy, the federal government remains committed to developing all sectors and creating job opportunities for millions of Nigerians.
He acknowledged that: “Without a thriving steel industry, no modern economy can achieve inclusive, large-scale and sustainable growth. Steel is universally acknowledged as the backbone of industrialisation. It supports critical sectors such as construction, energy, manufacturing, transportation and defense.
“The historical challenges in developing the steel sector, the administration of President Bola Tinubu has shown a clear resolve to address the longstanding issues plaguing the industry, with imported steel products draining over $4 billion in foreign exchange annually.
“This commitment is evident in the creation of the ministry of steel development, designed to give focussed attention to this strategic sector, which is expected to become the bedrock of Nigeria’s industrialisation.
“This decision is anchored on several key objectives: Utilizing Nigeria’s abundant steel raw materials to substitute imported steel products.”
However, he acknowledged that despite efforts spanning over four decades, Nigeria’s local steel production was still largely dependent on the recycling of scrap materials, producing mostly long products by private operators.
