The Federal Government of Nigeria, led by President Ahmed Bola Tinubu, in line with his “Renew Hope” mantra, has signed an agreement with Premium Steel and Mines Limited (PSML) to revive the former Delta Steel Company in Ovwian-Aladja, Delta State, in a move expected to attract more than $1.3 billion in investment and create over 20,000 jobs.
The agreement is aimed at rehabilitating and modernising the steel plant, restoring integrated steel production and strengthening Nigeria’s domestic steel value chain.
According to a statement issued on Friday by the Head of Press and Public Relations, Federal Ministry of Steel Development, Salamatu Jibaniya, PSML will invest more than $1.3 billion in raw material exploration and exploitation, as well as the rehabilitation and modernisation of the plant.
The investment is expected to return the facility to its installed production capacity of one million tonnes of liquid steel annually.
Under the agreement, PSML is expected to restore the integrated steel plant and commence commercial operations within 18 to 24 months, subject to sustained availability of iron ore.
The deal followed the execution of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML on August 20, 2026.
Speaking on the development, the Minister of Steel Development, Shuaibu Abubakar Audu, said the revival of the plant would boost local manufacturing, create employment and expand Nigeria’s industrial capacity.
Audu said the project was more than the restoration of an abandoned industrial facility, stressing that it would help rebuild Nigeria’s capacity to produce steel locally, support downstream industries and create opportunities for young Nigerians.
The Delta Steel Plant, commissioned in 1982 with an installed capacity of one million tonnes of liquid steel annually, was established as an integrated steel plant but later suffered years of operational challenges.
The Federal Government privatised the company in 2005, selling it to Global Infrastructure Holdings Limited as part of efforts to attract private investment for its revival. The Asset Management Corporation of Nigeria (AMCON) later sold the company to PSML in 2015 to recover outstanding debts.
The Ministry of Steel Development said the plant has not operated as an integrated steel facility since 2015.
The latest agreement is also expected to facilitate the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits, which will provide raw materials for the Delta steel plant and strengthen the domestic steel supply chain.
The project is projected to generate about 5,000 direct jobs and more than 20,000 indirect jobs. It is also expected to contribute to the Federal Government’s target of producing 10 million tonnes of liquid steel annually by 2030.
The revival of the plant is further expected to increase freight movement along the Central Rail Line and improve utilisation of the Delta Steel Company jetty.
The minister assured that the Federal Government would continue to work with private-sector investors to provide access to raw materials, infrastructure and an enabling environment for the growth of Nigeria’s steel industry.
The ministry, however, stressed that the agreement must result in actual mine development, plant rehabilitation, commercial steel production and sustainable employment within the agreed 18-to-24-month implementation period.
