By Peter Adelowo
Nigeria has launched a $2 billion initiative, backed by China, to rehabilitate the 42-year-old Ajaokuta Steel Plant, signaling a major push to boost industrial capacity and rebalance trade with its largest Asian partner.
Officials noted that while Nigeria currently exports only about $2 billion worth of goods to China, imports exceed $20 billion, creating a significant trade imbalance.
The government aims to expand total bilateral trade to $40 billion over the next five years, targeting at least $15 billion in Nigerian exports, including value-added products.
Trade and industry experts emphasize that the strategy focuses on moving beyond raw commodity exports, promoting local processing, manufacturing, and industrialisation as central pillars for economic transformation.
The Ajaokuta Steel Plant, long considered a key asset for national industrialisation, is expected to play a critical role in producing steel for domestic infrastructure, manufacturing, and construction sectors.
Reviving the plant also aligns with broader efforts to reduce dependence on imports, create jobs, and strengthen local supply chains.
Government officials described the initiative as a strategic step in Nigeria’s transition from a developing to a more industrialised economy, underpinned by industrial reforms, infrastructure investment, and enhanced trade policies with China.
