Abuja: Stakeholders have continued to express mixed reactions over the 2026 budgetary allocation to the non-functional Ajaokuta Steel Company Limited (ASCL).
According to News Agency of Nigeria, the ASCL, established in 1979, is a critical asset conceived to drive Nigeria’s modernisation.
NAN reports that ASCL was allocated N6.69 billion in the 2026 Appropriation Bill, representing a 4.90 per cent decrease from the 2025 allocation of N7.03 billion. The allocation covers personnel costs of N6.04 billion, overhead of N233.6 million, and N410.8 million for capital projects.
While some stakeholders acknowledged the government’s efforts to resuscitate the company, particularly in line with President Bola Tinubu’s economic diversification agenda, others expressed concern that the allocation could be mismanaged. Mr. Philip Jakpor, the Executive Director of Renevyln Development Initiative (RDI), raised concerns over reports on the steel company’s state, in spite of continued budgetary allocations for its revival. Jakpor alleged that past administrations had repeatedly used ASCL to access funds without improving its status.
Dr. Abdullahi Jabi, Chairman of the North Central Zone of the Campaign for Democracy, Human Rights Advocacy, and Civil Society of Nigeria, underscored the importance of discipline for effective budget implementation. According to him, budget ‘somersaults’ undermine Nigeria’s industrialisation efforts, which he described as crucial for the development of the steel sector.
Dr. Emmanuel Shuiabu, a former ASCL resident, shared his experience of living in Ajaokuta from 1982 to 2002. He recalled that the steel company was once the largest employer in Nigeria, providing more than 10,000 direct jobs. Shuiabu expressed concern over the current state of the plant, emphasizing that beyond political will, concrete political action, particularly engagement with the original builders of the plant, was required to drive meaningful change.
A Lokoja-based public analyst, who asked to remain anonymous, commented on the ongoing maintenance work at the plant. He noted that the work is primarily to prevent the plant from collapsing entirely, similar to the situation at the Jos Steel Rolling Mill. Mrs. Victoria Ola, a former staff member of the company, spoke about the decline in socio-economic activities in the communities surrounding the steel company.
A government official, who requested anonymity, explained that most funds were allocated to personnel costs to maintain the facility, while capital projects received only 6.1 per cent of the budget, insufficient for significant short-term change. NAN recalls that Prof. Linus Asuquo, Director-General of the National Metallurgical Development Centre, mentioned that ASCL costs the country over N1 billion annually in pensions, salaries, taxes, and administrative costs.
NAN also reports that the Minister of Steel Development, Prince Shuaibu Audu, in his New Year message, stated that Nigeria had advanced discussions with prospective investors in China to facilitate the revival of the Ajaokuta steel plant. The ministry facilitated a $500 million investment by NNPCL and its partners for the establishment of five mini-Liquefied Natural Gas plants within the Ajaokuta Steel plant. Additionally, the ministry executed an MoU with the Federal Ministry of Defence for the local production of military hardware and the establishment of a Military Industrial Complex within the Ajaokuta Steel Company.