Ajaokuta Steel Plant: A National Asset, Not A Graveyard – Response To Aliko Dangote’s Unfortunate Remarks
My attention has been drawn to recent comments attributed to Africa’s richest man, Alhaji Aliko Dangote, describing the Ajaokuta Steel Plant as obsolete and comparing its revitalization to “reviving the dead from a graveyard” or bringing back “someone on life support.”
While I hold Alhaji Dangote in high regard as a successful businessman and appreciate his contributions to Nigeria’s economy, I must respectfully but firmly disagree with his assessment of the Ajaokuta Steel Plant and challenge the unfortunate analogies he employed.
The Facts About Ajaokuta Steel Plant
Historical Significance: The Ajaokuta Steel Plant remains one of the largest steel complexes in Africa, designed with a capacity to produce 1.3 million tons of liquid steel annually.
This facility represents decades of national investment and strategic planning for Nigeria’s industrialization.
Current Asset Value:
Recent technical assessments have confirmed that substantial infrastructure remains intact and viable. The plant’s basic oxygen furnaces, rolling mills, and significant portions of the auxiliary facilities are salvageable and can be upgraded with modern technology.
Strategic Location:
Ajaokuta’s location provides unparalleled access to iron ore deposits in Itakpe, limestone in Okene, coal from Enugu, and water from the River Niger, making it naturally positioned as Nigeria’s steel hub.
Economic Potential:
Independent studies estimate that a fully operational Ajaokuta Steel Plant could create over 500,000 direct and indirect jobs while saving Nigeria billions of dollars currently spent on steel imports.
Contrary to Mr. Dangote’s characterization, Ajaokuta is not a graveyard but a sleeping giant. The comparison to reviving the dead is not only inappropriate but factually incorrect. Industrial plants, unlike living organisms, can be successfully revitalized with proper investment and modern technology.
Global Examples Of Successful Steel Plant Revivals
History is replete with examples of successfully revitalized steel plants:
GERMANY’S THYSSENKRUPP:
Modernized decades-old facilities to become world-class producers
CHINA’S BAOSTEEL: Transformed aging infrastructure into one of the world’s largest steel producers
INDIA’S TATA STEEL: Successfully upgraded century-old plants to modern standards.
BRAZIL’S CSN: Revitalized state-owned steel facilities through strategic partnerships
These examples prove that with vision, investment, and proper management, steel plants can be transformed from dormant assets to productive industrial powerhouses.
THE DANGER OF DEFEATIST RHETORIC
Mr. Dangote’s comments, while perhaps well-intentioned, risk undermining national morale and investor confidence in one of Nigeria’s most strategic assets. Such rhetoric can become a self-fulfilling prophecy, discouraging the very investments needed to realize the plant’s potential.
As a nation, we must reject the mentality that labels our strategic assets as “dead” or “obsolete.” Instead, we should approach challenges with the same entrepreneurial spirit that made Mr. Dangote successful in his own ventures.
I wish to inform the public that significant progress is being made toward Ajaokuta’s revival:
- The Federal Government has renewed commitment to the project under President Bola Ahmed Tinubu’s administration
- Technical partnerships are being explored with experienced international steel producers
- The National Assembly continues to provide legislative support for the project’s realization
- Local and international investors have expressed interest in public-private partnership arrangements
Rather than dismissing Ajaokuta as obsolete, I invite Mr. Dangote and other successful Nigerian entrepreneurs to consider constructive engagement with the project. His expertise in large-scale industrial operations could be valuable in developing a viable revival strategy.
The steel industry requires massive capital investment – an area where Mr. Dangote’s experience and resources could make a significant difference. Instead of writing off the project, let us explore how private sector expertise can complement government efforts.
One cannot help but wonder whether Mr. Dangote’s position is influenced by his own business interests. His recent venture into steel production might benefit from the continued dormancy of Ajaokuta, as it would eliminate a major potential competitor in the Nigerian steel market.
It is concerning that a prominent Nigerian businessman would publicly discourage investment in a national asset that could transform Nigeria’s industrial landscape. This position appears to prioritize private monopolistic interests over national industrial development.
As the elected representative of Ajaokuta Federal Constituency, I remain committed to:
- Advocating for sustained government investment in the steel plant
- Facilitating partnerships between government and credible private investors
- Ensuring transparency and accountability in all revival efforts
- Providing legislative support for policies that promote the steel industry
I call upon:
The Federal Government: To intensify efforts toward Ajaokuta’s revival and reject defeatist narratives
Private Investors: To look beyond surface challenges and see the enormous potential
International Partners: To consider Nigeria’s steel industry as a viable investment destination
The Media: To provide balanced reporting that highlights both challenges and opportunities
Fellow Legislators: To continue supporting legislative measures that facilitate the plant’s revival
CONCLUSION
Ajaokuta Steel Plant is not a patient on life support or a corpse in a graveyard – it is a strategic national asset awaiting the right combination of political will, technical expertise, and financial investment. With over 40% of the plant’s infrastructure still intact and Nigeria’s growing steel demand, the economic case for revival remains compelling.
We must not allow pessimism to triumph over possibility. The same determination that built Nigeria’s oil industry, telecommunications sector, and banking industry can revive our steel industry. Ajaokuta represents hope for Nigeria’s industrial future, not a monument to past failures.
I urge all stakeholders to approach this national project with optimism, strategic thinking, and collaborative spirit. Together, we can transform Ajaokuta from a symbol of unfulfilled potential into a beacon of Nigeria’s industrial renaissance.
Nigeria deserves a steel industry, and Ajaokuta remains our best pathway to achieving this goal.
Signed:
Hon. Sanni Egidi Abdulraheem
Member, House of Representatives
Ajaokuta Federal Constituency
Kogi State