Steel Development Ministry Signs Agreement To Revive Delta Steel Company

The Ministry of Steel Development has inked a deal to breathe new life into the Delta Steel Company, now operating as Premium Steel and Mines Limited (PSML) in Ovwian-Aladja, Delta State. The agreement is a major step in the government's mission to reinvigorate Nigeria's steel industry, which is seen as vital for industrialization, economic diversification, job creation, and sustainable development.

The Delta Steel Plant, launched in 1982 with a production capacity of one million tonnes of liquid steel annually, has struggled due to prolonged operational issues, ultimately shutting down after running at just 25% of its designed capacity. In a bid to lure private capital, the company was privatized to Global Infrastructure Holdings Limited in 2005, but AMCON resold it to PSML in 2015 to settle unservicable debts.

The plant has remained dormant since 2015, and the current administration under President Bola Ahmed Tinubu aims to change that. Speaking on the development, Steel Development Minister Prince Shuaibu Abubakar Audu highlighted how the revival aligns with President Tinubu's Renewed Hope Agenda, focusing on bolstering local manufacturing, generating employment, tapping into Nigeria's industrial potential.

Audu emphasized that the project is not just about bringing a defunct plant back to life but restoring Nigeria's steel production capacity, creating jobs for the youth, supporting downstream industries, and setting a foundation for sustainable industrialization. He stressed the government's commitment to partnering with private investors to unlock Nigeria's steel sector's potential, ensuring investments are backed by essential raw materials, infrastructure, policy coordination, and a conducive business environment.

PSML has pledged to pour over $1.3 billion into the project for raw material exploration, plant rehabilitation, and modernization to achieve full capacity production of 1 million metric tonnes of liquid steel per annum within 18-24 months. The agreement between NIOMCO and PSML, executed on August 20, 2026, is a crucial factor in this revival, providing a framework for renewed collaboration towards the plant's rehabilitation, reactivation, and sustainable operation.

The initiative is expected to revitalize NIOMCO, support the development of the Ajabanoko iron ore deposits, rehabilitate and commercialize PSML, attract over $1.3 billion in investment, create approximately 5,000 direct and 20,000 indirect jobs, support Nigeria's goal of 10 million tonnes of liquid steel production annually by 2030, and enhance rail and maritime logistics through increased freight movement along the Central Rail Line and utilization of the DSC Jetty.