Professor Banji Oyeyinka-Oyelaran, a former senior United Nations official and development economist, has described the collapse of the Ajaokuta Steel project as a defining moment in Nigeria’s industrial decline, citing failures in policy consistency, institutional stability, and long-term national planning.
Speaking in an interview with Vanguard, Oyeyinka-Oyelaran said the inability to complete the Ajaokuta Steel project went beyond the loss of a single industrial venture, arguing that it undermined the structural foundation required for sustainable manufacturing and industrial growth in Nigeria.
According to him, steel production is central to industrial development, serving as the backbone for manufacturing, construction, and downstream industries. He noted that without a functional steel industry, Nigeria became increasingly dependent on imports, limiting its capacity to stimulate small- and medium-scale enterprises that typically evolve around heavy industrial infrastructure.
Oyeyinka-Oyelaran, a trained chemical engineer, was among the young Nigerian engineers recruited during Ajaokuta’s formative years. He explained that the project was designed not only to operate a steel plant but also to build indigenous technical capacity for designing and managing future steel projects. As part of that vision, Nigerian engineers were sent to India for intensive training at major steel facilities, including Bokaro Steel Company and Ranchi Steel Plant, under a bilateral agreement.
However, shortly after their return, the project encountered serious setbacks. He attributed the decline to funding shortfalls, shifting government priorities, macroeconomic pressures, and austerity measures that stalled construction and left contractors unpaid.
He rejected claims that technical incompetence caused the failure, insisting that Nigeria had the necessary expertise and manpower. Instead, he identified weak policy coherence and lack of sustained political commitment as the primary factors.
Despite repeated revival attempts, Ajaokuta remains incomplete decades later, symbolizing what he described as Nigeria’s missed industrial opportunity.
