A prominent financial expert and developmental economist has issued a stern call to the Federal Government of Nigeria to expedite the total privatisation of the Ajaokuta Steel Company Limited (ASCL) to halt decades of fiscal hemorrhage and unlock an estimated $14 billion in annual revenue. Speaking at an economic summit in Abuja on Sunday, April 19, 2026, the Lead Consultant at the Economic Strategy Group, Dr. Ayo Teriba, argued that the persistent retention of the moribund asset under state control remains one of the greatest impediments to Nigeria’s industrial revolution. He maintained that the facility, which has gulped billions of dollars in maintenance costs without producing a single sheet of steel since its inception, could single-handedly transform the nation’s Gross Domestic Product (GDP) if handed over to competent private investors with the technical expertise and capital to revive its production lines.
The call for privatisation comes at a time when the Minister of Steel Development, Prince Shuaibu Abubakar Audu, has been exploring various “government-to-government” partnerships to resuscitate the plant. However, Dr. Teriba and other market analysts suggest that these sovereign-led efforts have historically failed due to bureaucratic bottlenecks and a lack of commercial incentives. Supporting context indicates that the Ajaokuta complex was designed to be the bedrock of Nigeria’s industrialization, with the capacity to generate thousands of direct jobs and stimulate the construction, automotive, and rail sectors. Dr. Teriba noted that the current global demand for steel provides a unique window for Nigeria to attract Tier-1 international steel giants, provided the government is willing to relinquish its majority stake and provide a transparent regulatory framework that guarantees a return on investment.
Stakeholder reactions to the demand for urgent privatisation have been sharply divided between labor unions and the organized private sector. The President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, lauded the economist’s stance, noting that local manufacturers currently spend trillions of Naira annually on steel imports from China and India. He argued that a functional, privately-run Ajaokuta would drastically reduce production costs and improve the competitiveness of Nigerian-made goods. Conversely, the leadership of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN) has expressed reservations, citing concerns over potential mass job losses and the “undervaluation” of national assets. They urged the Federal Government to consider a “joint-venture” model rather than an outright sale to ensure that the strategic national interest is protected.
Economic and industrial analysts observe that the “Ajaokuta Dilemma” is a test of the “Renewed Hope” administration’s commitment to market-led reforms. Experts suggest that the $14 billion figure cited by Dr. Teriba is attainable if the plant’s upstream and downstream units, including its captive power plant and rail links, are fully optimized. They argue that the continued allocation of billions in the national budget for “personnel costs” and “routine maintenance” of a non-functional plant is no longer sustainable under the current fiscal constraints. Dr. Teriba maintained that the government should act as a “facilitator and regulator” rather than a “manager” of complex industrial enterprises. He suggested that the privatisation process should be overseen by the Bureau of Public Enterprises (BPE) with strict “performance-based” clauses to prevent the asset from being stripped.
The broader implications of a successful privatisation of Ajaokuta point toward a significant reduction in Nigeria’s foreign exchange pressure. By producing steel locally, Nigeria could save billions of dollars currently lost to the importation of raw materials for infrastructure projects. Furthermore, the revival of the steel plant would catalyze the development of the Kogi State industrial corridor, creating a ripple effect of economic activities in the North-Central region. As the Federal Executive Council (FEC) continues to deliberate on the best roadmap for the steel sector, the focus remains on whether the government will finally bow to the “commercial logic” of privatisation. For Dr. Teriba and the proponents of a private-sector-led economy, the time for “sentimental attachment” to failed state enterprises has long passed.
