The Federal Government has signed a Sub-lease and Operations Agreement with Premium Steel and Mines Limited (PSML) to facilitate the revival of the former Delta Steel Company in Ovwian-Aladja, Delta State.
The agreement, signed between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML on August 20, 2026, is expected to support the rehabilitation and full reactivation of the integrated steel plant.
The development is part of the Federal Government’s efforts to restore Nigeria’s steel industry, strengthen local production and reduce the country’s dependence on imported steel products.
Under the agreement, PSML has committed more than 1.3 billion dollars to the project, covering raw material exploration and exploitation, as well as the rehabilitation and modernisation of the steel plant.
The company plans to restore the plant to its installed capacity of one million metric tonnes of liquid steel annually and commence commercial operations within 18 to 24 months.
The project will also support the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits to ensure a sustainable supply of raw materials for the steel plant.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the revival of the plant would strengthen Nigeria’s industrial capacity, create jobs and support the development of downstream industries.
He said the project was in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly the Administration’s commitment to local manufacturing, economic diversification and employment creation.
The Minister said the Federal Government would continue to work with credible private-sector investors to unlock the potential of the steel sector and provide the necessary policy and infrastructure support.
According to the Minister the agreement must translate into actual mine development, plant rehabilitation, commercial steel production and sustainable jobs within the agreed 18-to-24-month implementation period.
He said the revival of the plant will strengthen Nigeria’s steel value chain and position the country as a major steel-producing nation in Africa.
The Delta Steel Plant was commissioned in 1982 with an installed production capacity of one million tonnes of liquid steel annually, however, prolonged operational challenges led to its eventual shutdown.
The project is expected to create about 5,000 direct and more than 20,000 indirect jobs, while contributing to the Federal Government’s target of producing 10 million tonnes of liquid steel annually by 2030.
It is also expected to boost freight movement along the Central Rail Line and increase the utilisation of the Delta Steel Company Jetty, strengthening rail and maritime logistics.
