Experts are calling attention to the prolonged failure of Nigeria’s Ajaokuta Steel Company Limited (ASCL), a billion-dollar project that has yet to produce any steel, despite significant investments. The country’s continued dependence on imported steel has led to the loss of job opportunities and economic potential that a strong domestic steel industry could offer.
Ojiako Tochukwu Princewill, a Nigerian researcher based in the U.S., addressed these issues, explaining that the challenges facing the Ajaokuta Steel Mill are not solely due to poor management but also the failure to adopt modern steel-making technologies. The facility, which was nearly completed in 1994, has remained inactive for decades, largely due to political instability, insufficient funding, and outdated technology.
Princewill proposed adopting Compact Strip Production (CSP) technology as a viable solution for Nigeria’s steel industry. CSP is a more energy-efficient, cost-effective method that can produce steel continuously, reducing waste and improving product quality. Rather than attempting to revive the outdated Ajaokuta mill, he recommended investing in smaller, modern CSP mini-mills located near energy sources and raw materials, making them more efficient and sustainable.
He further argued that CSP technology could bring significant advantages, including lower capital investment, reduced CO₂ emissions, and the use of recycled scrap, making it ideal for a developing economy like Nigeria’s. Princewill stressed that the government should foster private investment and create policies to attract global steel companies to the country, which would support job creation, self-sufficiency in steel production, and industrial growth.
The failure of Ajaokuta Steel and similar projects is seen as a missed opportunity for Nigeria’s industrial development, but with the right focus on innovation, modern technology, and sustainability, the steel sector can be revitalized, creating long-term economic benefits for the nation.
