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Abuja — Experts have condemned Nigeria’s Ajaokuta Steel Company Limited (ASCL) as a billion-dollar project that has yet to produce any steel, highlighting significant challenges in the country’s industrial development.
Despite substantial financial investments, Nigeria continues to import millions of tonnes of steel annually, resulting in lost job opportunities and economic benefits associated with a robust steel industry. This situation has prompted critical questions regarding how to enhance the efficiency and sustainability of steel production in the country.
During a briefing for journalists in Abuja, Ojiako Tochukwu Princewill, a Nigerian researcher residing in the United States, addressed the difficulties confronting the Ajaokuta Steel Mill and emphasised the urgent need for modernisation to enable the growth of Nigeria’s steel sector.
He pointed out that the failure of ASCL is not solely attributable to poor management; it also reflects a failure to embrace contemporary steel-making technologies. The project, which was nearly completed in 1994, has remained inactive for decades.
According to him, the reasons for its failure include political instability, insufficient funding, and obsolete technology, all of which hinder the mill’s ability to compete in today’s market.
Princewill proposed that adopting Compact Strip Production (CSP) technology could provide a viable solution for Nigeria’s steel industry. CSP is a modern, cost-effective method that improves energy efficiency, reduces waste, and enhances product quality. This technology allows for continuous production, thereby increasing the effectiveness of steel manufacturing.
Rather than attempting to revive the outdated Ajaokuta facility, he recommended that Nigeria invest in smaller, modern CSP mini-mills situated near energy sources and raw materials. He believes the government should foster private investment and develop policies that attract global steel companies to Nigeria.
Princewill advocates for a focus on innovation and sustainability within the steel industry, arguing that by moving away from traditional, expensive methods and embracing modern technologies like CSP, Nigeria could create jobs, achieve self-sufficiency in steel production, and realise its aspirations for a thriving steel sector.
He stated, “The failure of the Ajaokuta Steel Mill and similar projects is not merely an issue of mismanagement; it also reflects a failure to adapt to modern steel-making technologies.
“One of the most promising solutions to Nigeria’s steel challenges lies in adopting Compact Strip Production (CSP) technology–an innovative and cost-effective manufacturing method already employed by industry leaders.
“Originally managed by the Soviet Union’s Tyazhpromexport, the plant was 98% complete by 1994 but has never become operational.
“Challenges such as outdated technology, inefficient energy usage, and inadequate policy frameworks have impeded its viability.
“CSP requires significantly lower capital investment compared to conventional steel mills, making it a feasible solution for developing economies like Nigeria.
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“With reduced CO₂ emissions and a reliance on recycled scrap, CSP presents a cleaner alternative to traditional steel-making practices.
“Rather than attempting to revive outdated, oversized projects like Ajaokuta, the government and private sector should invest in modern CSP mini-mills strategically located near energy sources and raw material hubs.
“The focus should be on creating small, efficient, and scalable CSP-based steel plants instead of relying on obsolete, large-scale mills.
“Nigeria’s failure to produce domestic steel is not just an economic setback; it is a missed opportunity for industrial growth, job creation, and self-sufficiency.
“With the right strategies, Nigeria can transform its steel sector, create jobs, and achieve industrial self-sufficiency.”
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