FG moves to revive Delta Steel with $1.3bn

The Federal Government has announced plans to revive the dormant Delta Steel Company, with the current owners, Premium Steel and Mines Limited, committing over $1.3 billion to rehabilitate and modernize the plant. The revival plan, if successful, could create approximately 25,000 jobs and return the plant to commercial production within 18 to 24 months.

The agreement includes a sub-lease and operations deal between the National Iron Ore Mining Company, Itakpe, and Premium Steel and Mines Limited, which is crucial for the plant's operation as it requires sustainable access to iron ore. The revival marks an attempt to resurrect one of Nigeria's most ambitious industrial projects, which was commissioned in 1982 but has struggled with operational difficulties.

The project aligns with President Bola Tinubu's Renewed Hope Agenda, aiming to expand local manufacturing, create employment, and stimulate economic diversification. The government's success in this endeavor will depend on securing reliable raw materials, adequate power supply, efficient transport infrastructure, and favorable policy coordination.

The plan could also strengthen Nigeria's domestic steel value chain and reduce the country's dependence on imported steel products. If implemented successfully, the project could contribute significantly to Nigeria's steel production target of 10 million tonnes annually by 2030.