FG moves to revive Delta Steel with $1.3bn

The Federal Government of Nigeria has taken steps to revitalize the inactive Delta Steel Company, which was last operational in 2015, by committing over $1.3 billion for rehabilitation and modernization. This plan aims to return the steel plant in Ovwian-Aladja, Delta State, to its original capacity of 1 million metric tonnes of liquid steel annually within 18 to 24 months.

The revival plan received a significant boost from the signing of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company and Premium Steel and Mines Limited, which is expected to address one of the major hurdles for restarting the integrated steel plant: securing sustainable access to iron ore. The Federal Ministry of Steel Development emphasized that the agreement marks a crucial milestone in the government's efforts to reposition Nigeria's legacy steel industry assets as engines of industrialization, job creation, and economic diversification.

The revival of Delta Steel is seen as a critical component of President Bola Tinubu's Renewed Hope Agenda, aiming to strengthen local manufacturing, create employment opportunities, and unlock idle productive assets. The government's success will depend on securing reliable access to raw materials, adequate power supply, efficient transport infrastructure, and a conducive policy environment.