Abuja: The Federal Government has signed a sub-lease agreement for the restoration and full operationalisation of the Delta Steel Company, now known as Premium Steel and Mines Limited (PSML), located in Ovwian-Aladja, Delta.
According to News Agency of Nigeria, the agreement was made between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML. A statement issued in Abuja, signed by Salamatu Jibaniya, Head of Press and Public Relations in the Federal Ministry of Steel Development, revealed that PSML has committed to investing more than $1.3 billion in raw materials. This agreement is expected to facilitate the reactivation of the integrated steel plant, enhance Nigeria’s domestic steel production capacity, and reduce reliance on imported steel products.
Minister Shuaibu Audi disclosed that PSML management has committed to injecting over $1.3 billion into the project, focusing on raw materials exploration and exploitation. Audi further stated that the agreement includes steel plant rehabilitation and modernization to achieve a sustainable operation with a full production capacity of one million metric tonnes of liquid steel per annum. The company aims to restore the plant to its designed production capacity of one million metric tonnes annually and is expected to commence commercial operations within 18 to 24 months, contingent upon sustainable iron ore supply.
Audu emphasized that this agreement represents a significant step in the Federal Government’s efforts to reposition Nigeria’s steel assets for industrialization, economic diversification, job creation, and sustainable national development. Successful implementation will support NIOMCO’s reactivation and the development of the Ajabanoko iron ore deposits. The project is anticipated to create approximately 5,000 direct and over 20,000 indirect jobs. Additionally, it will contribute to Nigeria’s goal of producing 10 million tonnes of liquid steel annually by 2030. Increased production is expected to boost freight movement along the Central Rail Line and promote greater utilization of the Delta Steel Company Jetty.
The reactivation aligns with President Bola Tinubu’s Renewed Hope Agenda, highlighting the project’s broader significance beyond reviving an old industrial facility. It aims to restore Nigeria’s ability to produce steel locally, create opportunities for young people, support downstream industries, and strengthen the foundation for sustainable industrialization. The Federal Government plans to continue collaborating with responsible private-sector investors to unlock Nigeria’s steel sector’s potential. Such efforts require adequate raw materials, infrastructure, policy coordination, and a conducive business environment. Reliable access to iron ore and other critical raw materials from NIOMCO, dependable power, logistics, and supporting infrastructure will be crucial for the project’s success.
Established in 1982 as an integrated steel plant with an installed capacity of one million tonnes of liquid steel per annum, the Delta Steel Plant eventually ceased operations as an integrated facility. This prompted renewed government efforts to attract private-sector investment for its reactivation.