FG Gives 2-Year Timeline, Backs $1.3B Injection to Revive Delta Steel CompanyOvwian-Aladja, Delta State, by signing a Sub-lease and Operations Agreement that unlocks more than $1.3 billion in private investment, with commercial operations targeted within 18 to 24 months.
The deal, executed on August 20, 2026, between the National Iron Ore Mining Company (NIOMCO) in Itakpe and Premium Steel and Mines Limited (PSML), the current owners of the former DSC aims to fully rehabilitate and modernize the integrated steel plant. PSML has committed over $1.3 billion for raw material exploration and exploitation, plant rehabilitation, and modernization to restore the facility to its designed capacity of one million metric tonnes of liquid steel per year.
Background of the Plant
Commissioned in 1982 as Nigeria’s first integrated steel complex, the Delta Steel Plant was built with an annual capacity of one million tonnes of liquid steel. It never reached full potential, operating at roughly 25% capacity before prolonged challenges led to its shutdown. In 2005, the government privatized it to Global Infrastructure Holdings Limited. The Asset Management Corporation of Nigeria (AMCON) later sold the assets to PSML in 2015 to recover debts. The plant has not functioned as an integrated steel facility since then.
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Under President Bola Ahmed Tinubu’s administration, the Ministry of Steel Development is prioritizing the revival as part of efforts to drive industrialization, economic diversification, job creation, and reduced reliance on imported steel.
Key Commitments and Timeline
PSML has pledged to reactivate the integrated plant and begin commercial operations within 18–24 months (approximately two years), contingent on a steady supply of iron ore. The new agreement secures sustainable iron ore access from NIOMCO and supports development of the Ajabanoko iron ore deposits.
Minister of Steel Development Prince Shuaibu Abubakar Audu described the revival as more than restarting an old facility: “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.” He emphasized that the government will continue partnering with credible private investors while ensuring access to raw materials, infrastructure, and a supportive policy environment.
Expected Impact
The project is projected to:
Attract over $1.3 billion in investment.
Create about 5,000 direct jobs and more than 20,000 indirect jobs (totaling around 25,000).
Contribute to Nigeria’s national target of 10 million tonnes of liquid steel production annually by 2030.
Reactivate NIOMCO and boost development of additional iron ore resources.
Strengthen logistics through increased freight on the Central Rail Line and greater use of the DSC jetty.
The Federal Government has stressed that the agreement must deliver tangible results, mine development, plant rehabilitation, commercial production, and sustainable employment within the agreed 18-to-24-month window. The Ministry of Steel Development thanked the Ministries of Justice and Solid Minerals Development for their support and praised PSML’s commitment.
This initiative aligns with broader goals to transform Nigeria into a competitive steel producer capable of meeting a significant share of domestic demand and playing a larger role in Africa’s steel and metals value chain. Successful implementation will be the critical next test for turning this long-awaited revival into reality.
