In the 2025 federal budget, the Nigerian government has allocated ₦6.21 billion to cover the salaries of workers at the Ajaokuta Steel Company. This is a significant increase from the ₦4.29 billion earmarked in 2024, marking a 45% rise despite the steel plant’s long-standing inactivity. The plant has not produced any steel since its creation in 1979.
Ajaokuta Steel was initially designed to play a key role in Nigeria’s industrialization, but after nearly 45 years, it remains incomplete. Despite the plant being 98% ready by 1994, poor management and lack of funding have prevented it from becoming fully operational. Although there have been various efforts to revive the steel plant, such as agreements with Russian and Chinese companies, progress has been slow.
Over the past decade, the Nigerian government has spent nearly ₦39 billion on salaries and allowances for workers at Ajaokuta Steel. Once the 2025 budget is approved, this figure will rise to about ₦45 billion, even though the plant is not actively producing steel. Critics, including Senator Natasha Akpoti-Uduaghan, have raised concerns about the large budget allocations, especially when very few workers are seen at the plant.
The budget for 2024 saw a slight increase in funds for the plant, with personnel costs making up over 83% of the ₦5.18 billion allocation. For 2025, personnel costs will account for an even larger portion—91%—of the ₦6.81 billion allocated for Ajaokuta Steel.
While funds are still being allocated for salaries, there are plans to invest in the plant’s revitalization. The Nigerian government has expressed intentions to restart parts of the plant, with an estimated ₦35 billion required for the Light Mill Section alone. Some experts have suggested privatizing the company as a way to efficiently unlock its potential and ensure its long-term success.
Ajaokuta Steel remains a symbol of Nigeria’s unfulfilled industrialization ambitions. While the large government allocations continue, questions about the plant’s future and how public funds are being used persist.
