Nigeria signs a $1.3 billion agreement with Premium Steel and Mines to revive the dormant Delta Steel plant.
TL;DR
The Federal Government of Nigeria and Premium Steel and Mines Limited have signed an agreement to rehabilitate and reactivate the dormant Delta Steel plant in Ovwian-Aladja, Delta State.
Premium Steel has committed to investing over $1.3 billion to modernize the facility and restore its production capacity to one million metric tonnes of liquid steel annually.
Intelligence
The agreement aims to resolve raw material challenges by reactivating the National Iron Ore Mining Company (NIOMCO) and developing the Ajabanoko iron ore deposits.
The project is expected to create approximately 5,000 direct jobs and 20,000 indirect jobs, supporting Nigeria's target of producing 10 million tonnes of steel annually by 2030.This $1.3 billion agreement signals Nigeria's strategic focus on backward integration to reduce its heavy reliance on imported steel, which is critical for local construction and manufacturing.
Over the reactivation timeline, domestic construction and engineering firms in Nigeria stand to benefit from a more stable local supply of liquid steel.
However, the project's success hinges on whether the government and Premium Steel can successfully resolve long-standing raw material supply and logistics challenges at NIOMCO during this period.
7 companies and people in this story have tracked profiles.
Recommended reading
Picked for you by topic, popularity and relevance — not just the newest posts.
US tech firm Cybastion commits $300 million to build data centers and cybersecurity infrastructure in Senegal.
Cybastion commits $300M to Senegal for data center and cyber infrastructure
Africa GreenCo secures $11.5 million from existing investors to scale renewable energy trading across Southern Africa.
Africa GreenCo secures $11.5 million to accelerate clean energy transition
Egyptian enterprise AI startup Velents expands into Bahrain through a strategic partnership with telecom operator stc Bahrain.
Egyptian AI startup Velents expands into Bahrain
The Vumela Fund, managed by Edge Growth, has made a strategic investment in Cape Town-based fresh produce exporter Iris Fresh.
Vumela Fund backs Iris Fresh
Partners launch Kenya's first fully protected coastal submarine cable system to boost digital connectivity and regional trade.
Kenya: Lulu Cable Opens New Investment Opportunities Along Kenya's Coast
US logistics-tech firm Pigee is acquiring a 55% stake in Nigerian startup ShipAfrica to expand into West Africa.
US-based Pigee to acquire 55% stake in Nigerian logistics startup ShipAfrica