Aliko Dangote, founder and CEO of the Dangote Group, has expressed skepticism over the viability of the Ajaokuta Steel Company, describing efforts to revive the facility as unlikely to succeed.
In a video shared on TVC X on Tuesday, Dangote highlighted the critical role of a thriving steel industry in national development but warned that Ajaokuta’s long-standing challenges make its success improbable.
“There is no nation that you can build without a steel industry and honestly within us here, Ajaokuta will not work. We can keep deceiving ourselves and keep being passionate about it, but it’s not possible,” Dangote said.
He likened reviving Ajaokuta Steel to trying to bring outdated or moribund technology back to life, comparing it to resurrecting a “dead person” or expecting a dying patient to perform at full capacity. Dangote also drew parallels to old Volkswagen vehicles, saying they cannot be compared to modern vehicles like Kia, emphasising the need for adaptation in a rapidly evolving world.
Ajaokuta Steel’s troubled history
Located in Ajaokuta, Kogi State, the steel company was constructed between 1979 and the mid-1990s but was never completed and has remained largely non-operational for over two decades. Past governments have made repeated attempts to revive the facility without success.
Located in Ajaokuta, Kogi State, the steel company was constructed between 1979 and the mid-1990s but was never completed and has remained largely non-operational for over two decades. Past governments have made repeated attempts to revive the facility without success.
In September 2022, the federal government agreed to pay $496 million to settle a dispute with an Indian firm over the steelworks. Later that year, 11 companies, including three Russian firms, expressed interest in taking over Ajaokuta Steel on a concession basis.
In August 2023, the then Minister of Steel Development, Shuaibu Audu, vowed to rehabilitate the company, set a roadmap for the steel sector, and enact regulatory bills to facilitate its development. In September 2024, the government signed an agreement with a Russian consortium to complete and operate the steel plant and the National Iron Ore Mining Company.
Despite these efforts, Dangote remains unconvinced about the plant’s prospects, citing structural and operational challenges as major obstacles to its success.
Comments (0)
Please login to comment.