FG Secures $1.3bn Investment to Revive Delta Steel Plant, Create 25,000 Jobs

By Fatima Saka

The Federal Government has secured a commitment of over $1.3 billion for the revival and full operationalisation of the long-dormant Delta Steel Plant, now known as Premium Steel and Mines Limited (PSML), with the project expected to create about 25,000 direct and indirect jobs.

The investment commitment followed the signing of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and Premium Steel and Mines Limited on Thursday, August 20, 2026, to provide sustainable iron ore supply for the rehabilitation and operation of the plant in Ovwian-Aladja, Delta State.

Under the agreement, PSML is expected to inject more than $1.3 billion into raw material exploration and exploitation, rehabilitation and modernisation of the steel plant, with commercial operations targeted within 18 to 24 months.

The project is expected to create about 5,000 direct and over 20,000 indirect jobs while restoring the plant’s capacity to produce one million metric tonnes of liquid steel annually.

Minister of Steel Development, Prince Shuaibu Abubakar Audu, described the development as a major step towards restoring Nigeria’s steel production capacity and advancing the industrialisation agenda of the Federal Government.

“The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life. It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation,” Audu said.

He said the revival of the plant aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly the commitment to strengthening local manufacturing, creating employment opportunities and unlocking the productive capacity of Nigeria’s industrial sector.

The Delta Steel Plant was commissioned in 1982 as an integrated green steel plant with an installed capacity of one million tonnes of liquid steel per annum.

However, the facility suffered prolonged operational challenges and eventually shut down after operating at only about 25 per cent of its designed capacity.

In a bid to attract private capital for its revival, the Federal Government privatised the company to Global Infrastructure Holdings Limited in 2005. The Asset Management Corporation of Nigeria later re-sold the company to Premium Steel and Mines Limited in 2015 to recover unserviceable debts.

The plant has not operated as an integrated steel facility since 2015.

The Ministry said the agreement with NIOMCO was designed to address one of the major requirements for the sustainable operation of the plant by guaranteeing access to iron ore and other critical raw materials.

The project is also expected to reactivate NIOMCO, support the development of the Ajabanoko iron ore deposits, strengthen the domestic steel value chain and reduce Nigeria’s dependence on imported steel products.

It will further support Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.

Audu said the Federal Government remained committed to working with responsible private-sector investors to unlock the enormous potential of the steel sector while ensuring investments were supported by adequate raw materials, infrastructure, policy coordination and an enabling business environment.

He noted that the successful operation of the Delta Steel Plant would require reliable access to iron ore from NIOMCO, dependable power supply, efficient logistics and other supporting infrastructure.

The project is also expected to strengthen rail and maritime logistics through increased freight movement along the Central Rail Line and greater utilisation of the DSC Jetty.

The Federal Government, however, stressed that the agreement must translate into concrete mine development, plant rehabilitation, commercial steel production and sustainable jobs within the agreed 18- to 24-month implementation period.

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The Ministry of Steel Development commended the Ministry of Justice and the Ministry of Solid Minerals Development for supporting the agreement and praised PSML for its commitment to reviving the strategic national asset.

The Federal Government said the initiative formed part of its broader ambition to transform Nigeria into a competitive steel-producing nation capable of meeting a substantial proportion of domestic demand and positioning the country as a major player in Africa’s steel and metals value chain.