By Daniel Oluwatobiloba Popoola
The Federal Government has moved to revive the long-dormant Delta Steel Company, with its current owners, Premium Steel and Mines Limited, committing more than $1.3 billion to rehabilitate and modernise the plant and return it to commercial production within 18 to 24 months.
The revival plan, which could create about 25,000 direct and indirect jobs, received a boost on Thursday, 20 August, 2026, following the signing of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company, Itakpe, and Premium Steel and Mines Limited, an arrangement expected to address one of the major requirements for restarting the integrated steel plant, which is sustainable access to iron ore.
The development marks a fresh attempt to resurrect one of Nigeria’s most ambitious industrial projects, which was commissioned in 1982 with an installed capacity of one million metric tonnes of liquid steel annually but later slipped into prolonged operational difficulties.
The plant, located in Ovwian-Aladja, Delta State, had operated at only about 25 per cent of its designed capacity before eventually shutting down.
According to a statement issued on Thursday, 20 August, 2026 by the Head of Press and Public Relations at the Federal Ministry of Steel Development, Salamatu Jibaniya, the agreement formed part of the Federal Government’s broader efforts to reposition dormant steel assets as engines of industrialisation, job creation and economic diversification.
The statement explained that the Federal Ministry of Steel Development had signed the agreement to facilitate the revival and full operationalisation of the Delta Steel Company, now known as Premium Steel and Mines Limited, Ovwian-Aladja, Delta State, describing it as a significant milestone in the government’s ongoing efforts to reposition Nigeria’s legacy steel industry assets as a critical driver of industrialisation, economic diversification, job creation and sustainable national development.
Recall that the government had privatised the company to Global Infrastructure Holdings Limited in 2005 in an attempt to attract private capital and revive operations. However, the Asset Management Corporation of Nigeria subsequently re-sold the company to Premium Steel and Mines Limited in 2015 in a bid to recover unserviceable debts, after which the facility remained inactive as an integrated steel plant.
Under the new arrangement, Premium Steel and Mines Limited is expected to invest more than $1.3 billion in raw material exploration and exploitation, as well as the rehabilitation and modernisation of the steel complex, with the company also committing to restoring the plant to its installed capacity of one million tonnes of liquid steel annually, subject to the availability of sustainable iron ore supplies.
The Minister of Steel Development, Abubakar Audu, said the planned revival went beyond restarting an abandoned industrial facility, arguing that Nigeria’s broader industrial ambitions depended on its ability to produce critical materials locally.
He explained that the revival of Delta Steel Company was about restoring Nigeria’s capacity to produce steel locally, creating opportunities for young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation.
Audu said the initiative aligned with President Bola Tinubu’s Renewed Hope Agenda and the administration’s push to expand local manufacturing, create employment and unlock idle productive assets.
He added that the government would work with private investors but stressed that the success of the project would depend on more than financial commitments, noting that steel production requires reliable access to raw materials, particularly iron ore, as well as adequate power supply, efficient transport infrastructure and coordinated government policies.
The minister said the Federal Government remained committed to working with responsible private-sector investors to unlock the enormous potential of Nigeria’s steel sector, while ensuring that investments are supported by the necessary raw materials, infrastructure, policy coordination and enabling business environment.
The ministry explained that the new agreement would provide a framework for collaboration between the Federal Government and Premium Steel and Mines Limited towards the rehabilitation and sustainable operation of the plant, adding that it was also expected to support the reactivation of the National Iron Ore Mining Company and the development of the Ajabanoko iron ore deposits.
Beyond the steel plant itself, the government said the project could strengthen the domestic steel value chain and reduce Nigeria’s dependence on imported steel products, while also increasing freight movement on the Central Rail Line and boosting the utilisation of the Delta Steel Company Jetty, potentially linking mining, rail, maritime transport and manufacturing in a broader industrial value chain.
The Federal Government said the project would create about 5,000 direct jobs and more than 20,000 indirect jobs while contributing to Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
For the government, the agreement will now face its biggest test in implementation, as the Ministry of Steel Development stated that the arrangement must move beyond paperwork and translate into actual mine development, plant rehabilitation, commercial steel production and sustainable employment within the agreed 18-to-24-month period.
After years of failed revival efforts, changes in ownership and prolonged inactivity, the proposed return of Delta Steel represents a major test of the Federal Government’s renewed effort to rebuild Nigeria’s industrial base.
If the promised iron ore supply, investment and infrastructure support materialise, the Ovwian-Aladja plant could become a major link in Nigeria’s ambition to build a domestic steel industry and reduce reliance on imported industrial materials.
