Federal Government Signs $1.3bn Delta Steel Plant Deal, Eyes 20,000 Jobs

The federal government 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 project expected to attract more than $1.3 billion in investment and create over 20,000 jobs.

The deal is expected to facilitate the rehabilitation and modernisation of the steel plant, restore integrated steel production and strengthen Nigeria’s domestic steel value chain.

According to a statement on Friday by the Head of Press and Public Relations, Federal Ministry of Steel Development, Salamatu Jibaniya, PSML plans to invest more than $1.3 billion in raw material exploration and exploitation, plant rehabilitation and modernisation.

The investment is expected to enable the plant to return to its installed production capacity of one million tonnes of liquid steel annually.

PSML has also committed to restoring the integrated steel plant and commencing commercial operations within 18 to 24 months, subject to sustained iron ore supply.

The agreement 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 support local manufacturing, create employment and expand Nigeria’s industrial capacity.

“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.

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 prolonged operational challenges.

The federal government privatised the company to Global Infrastructure Holdings Limited in 2005 to attract private capital for its revival.

The Asset Management Corporation of Nigeria (AMCON) subsequently sold the company to PSML in 2015 to recover unserviceable debts.

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

Under the new agreement, the project is expected to facilitate the reactivation of NIOMCO and development of the Ajabanoko iron ore deposits, providing raw materials for the steel plant and strengthening the domestic steel value chain.

The project is expected to create about 5,000 direct and more than 20,000 indirect jobs, while contributing to Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.

The ministry said the revival would also increase freight movement along the Central Rail Line and boost utilisation of the Delta Steel Company jetty.

Audu said the government would continue to work with private-sector investors to ensure access to raw materials, infrastructure and an enabling business environment for the steel industry.

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