The Federal Government has signed an agreement with Premium Steel and Mines Limited (PSML) to facilitate the revival and full operationalisation of the former Delta Steel Company in Ovwian-Aladja, Delta State.
The agreement, executed on Thursday, August 20, 2026, between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML, is expected to pave the way for the rehabilitation and sustainable operation of the integrated steel plant.
The Federal Ministry of Steel Development said the development is part of the government’s efforts to reposition Nigeria’s steel industry as a key driver of industrialisation, economic diversification, job creation and national development.
Commissioned in 1982 with an installed capacity of one million tonnes of liquid steel annually, the Delta Steel Plant was designed as an integrated greenfield steel plant. However, prolonged operational challenges forced the facility to operate at only about 25 per cent of its designed capacity before its eventual shutdown.
The Federal Government later privatised the company to Global Infrastructure Holdings Limited in 2005, while the Asset Management Corporation of Nigeria (AMCON) subsequently sold the company to PSML in 2015 to recover unserviceable debts.
According to the ministry, the plant has not operated as an integrated steel facility since 2015, a situation the administration of President Bola Ahmed Tinubu is seeking to reverse.
Under the agreement, PSML has committed more than US$1.3 billion for raw material exploration and exploitation, rehabilitation and modernisation of the steel plant, with the goal of restoring production to its full capacity of one million metric tonnes of liquid steel annually.
The company has also committed to completing the reactivation of the integrated plant and commencing commercial operations within 18 to 24 months, subject to sustained iron ore supply.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the revival of the plant aligns with President Tinubu’s Renewed Hope Agenda, particularly the administration’s drive to strengthen local manufacturing, create employment and unlock Nigeria’s industrial capacity.
Audu said the project was about more than restoring an old industrial facility, stressing that it would help restore Nigeria’s capacity to produce steel locally, create opportunities for young people, support downstream industries and strengthen the foundation for sustainable industrialisation.
The minister said the Federal Government would continue to work with credible private-sector investors to unlock the potential of the steel industry while providing the necessary raw materials, infrastructure, policy coordination and enabling business environment.
The ministry identified reliable access to iron ore, particularly from NIOMCO, Itakpe, as well as dependable power, logistics and supporting infrastructure as critical to the success of the project.
The revival project is expected to reactivate NIOMCO and support the development of the Ajabanoko iron ore deposits, attract more than US$1.3 billion in investment, create about 5,000 direct and over 20,000 indirect jobs, and contribute to Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
It is also expected to boost rail and maritime logistics through increased freight movement along the Central Rail Line and greater utilisation of the Delta Steel Company Jetty.
The Federal Government said the agreement must translate into actual mine development, plant rehabilitation, commercial steel production and sustainable employment within the agreed 18–24-month implementation period.
The ministry appreciated the support of the Ministry of Justice and the Ministry of Solid Minerals Development, while commending PSML for its commitment to reviving the strategic national asset.
The statement was signed by Salamatu Jibaniya, Head of Press and Public Relations, Federal Ministry of Steel Development.
The Federal Government reaffirmed its commitment to transforming Nigeria into a competitive steel-producing nation capable of meeting a significant proportion of domestic demand and becoming a major player in Africa’s steel and metals value chain.