Africa’s richest man and President of the Dangote Group, Aliko Dangote, has stated that the long-delayed Ajaokuta Steel Company “will never work,” casting doubt on decades of government efforts to revive Nigeria’s flagship industrial project.
Speaking recently, Dangote noted that the steel plant, conceived in the 1970s as the backbone of Nigeria’s industrialization, has become obsolete and cannot meet present-day technological and market demands.
He stressed that the project’s outdated infrastructure and persistent operational setbacks make it economically unviable.
The Ajaokuta Steel Company, located in Kogi State, was designed to produce millions of tonnes of steel annually but has failed to commence full-scale production nearly five decades after construction began.
Despite repeated government interventions, including billions of dollars in funding, joint venture talks, and international technical assessments, the plant remains idle.
Dangote’s remarks come at a time when the federal government is still pursuing partnerships to resuscitate the plant.
Earlier this year, authorities reiterated their commitment to transforming Ajaokuta into a functioning integrated steel producer, citing its strategic importance to national development and job creation.
Industry experts argue that while Dangote’s assessment reflects the technical and financial risks involved, abandoning the project altogether could further weaken Nigeria’s industrial base.
Steel remains a critical input for construction, manufacturing, and infrastructure, sectors where Nigeria relies heavily on imports.
Analysts suggest that Nigeria faces a choice between modernizing Ajaokuta through costly overhauls and new technology or redirecting resources to greenfield steel projects that align with current global standards.
Dangote emphasized that his position was not about undermining government policy but about recognizing economic realities.
“What we have built at Dangote Refinery is proof of what can be achieved with the right approach. But Ajaokuta, as it stands, cannot deliver value,” he said.
The debate over Ajaokuta’s future is now likely to intensify, with stakeholders weighing the cost of revival against alternative industrial strategies.
