Nigeria’s Minister of Steel Development, Shuaib Abubakar Audu, has announced the federal government’s decision to privatize the Ajaokuta Steel Company Limited (ASCL) along with its Iron Ore Mine in Itakpe. This move is part of the government’s efforts to kickstart operations in the steel sector.
The announcement was made during the Ninth Nigeria Mining Week, held in Abuja, which was themed “From the Inside-Out: Building the Mining Sector to be the Cornerstone of Nigeria’s Economy.” The event underscored the government’s comprehensive strategy to revitalize the mining sector.
Minister Audu highlighted that Nigeria currently spends over $4 billion annually on steel imports. To tackle this issue, the government has initiated plans for the privatization of Ajaokuta Steel and its associated Iron Ore Mine in Itakpe. “The Federal Government has decided to privatize the foremost integrated steel plant, Ajaokuta Steel Company Limited (ASCL), at Ajaokuta and its captive Iron Ore Mine at Itakpe, and we have kick-started the process to ensure the accomplishment of the above,” he stated.
Transforming the Economy through Mineral Resources
In addition to the privatization announcement, the Federal Government reiterated its commitment to transforming the mineral sector into a key driver of Nigeria’s economic diversification agenda. Speaking on behalf of President Bola Tinubu, the Minister of Innovation, Science, and Technology, Uche Geoffrey Nnaji, emphasized the administration’s efforts to reshape the sector. “Under the remarkable leadership of the Minister of Solid Minerals, Dr. Dele Alake, our nation’s mining agenda has entered a new chapter. His dedication has reinvigorated our approach, addressing challenges with a vision that positions Nigeria’s mining sector as the backbone of economic growth. Together, we are shaping a mining sector that can stand as a global model of innovation, resilience, and sustainable development,” he said.
More Insights
Dr. Dele Alake, the Minister of Solid Minerals, reaffirmed the government’s commitment to reforming the sector under the Renewed Hope Agenda, which places mining at the core of Nigeria’s economic strategy. At the event, Alake reflected on his earlier pledge made during the 8th Nigeria Mining Week and reiterated the administration’s focus on collaboration and reform. “I emphasized that the seven-point agenda of strategic intervention in the sector emerged from critical research and analysis of the micro and macro components of the sector, enabling a holistic, global, and panoramic dissection of the gains and pains of the sector,” he noted.
Alake also detailed recent accomplishments, including the prosecution of over 300 illegal miners and ongoing policy reforms aimed at enhancing the sector’s economic contribution. Garza Jonathan Gbefwi, Chairman of the House Committee on Solid Minerals, called for increased funding in the 2025 budget, stressing the sector’s potential to alleviate Nigeria’s economic challenges.
Furthermore, Dr. Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), shared key findings from the 2023 Solid Minerals Audit Report. He disclosed that Nigeria produced 95.07 million tonnes of solid minerals in 2023, generating N9.01 billion in royalties. Exports totaled 4.32 million metric tonnes, valued at N117.29 billion. Despite these figures, the sector’s contribution to GDP remains modest at 0.75%.
