Between 2016 and 2023, ₦1.43 trn was spent on the Ajaokuta facility. Yet, the plant has never produced steel commercially.
Nigeria has invested heavily in reviving its refineries and the Ajaokuta Steel Complex over the past decade, yet both remain largely inactive. Between 2016 and 2023, the government spent approximately ₦1.43 trillion on Ajaokuta through salaries, settlements and revival projects, and separately allocated over ₦11.35 trillion on refinery maintenance—despite no commercial steel production.
From 2016 to 2023 alone, ₦29.35 billion went to personnel costs at Ajaokuta, covering salaries, pensions and overheads for staff at a non-operational facility. In May 2024, President Tinubu approved ₦35 billion to revive just the Light Mill Section—an inferior portion of the complex with limited commercial value.
Contractors assigned to the refineries have been suspended amid friction between the NNPC, anti-graft agencies and government entities. Stakeholders warn that the refinery assets might only fetch scrap value if sold.
Despite being conceived nearly 50 years ago as symbols of industrial ambition, Nigeria’s flagship steel and refining assets remain dormant. Observers call for transparent restructuring, private-sector participation or even divestment to stem further fiscal losses.