FG Signs $1.3bn Deal to Revive Delta Steel Plant, Target 5,000 Direct Jobs, 20,000 Indirect Jobs

By Emmanuel Eseoghene Okoro

The Federal Government has signed an agreement with Premium Steel and Mines Limited (PSML) to revive and modernise the former Delta Steel Company in Ovwian-Aladja, Delta State, in a development expected to attract more than $1.3 billion in investment and generate thousands of jobs.

The agreement, executed as part of the Federal Government's efforts to revitalise Nigeria's industrial sector, is aimed at restoring integrated steel production at the plant and strengthening the country's domestic steel value chain.

According to the Federal Ministry of Steel Development, PSML will invest more than $1.3 billion in raw material exploration and exploitation, as well as the rehabilitation and modernisation of the steel plant.
The investment is expected to restore the facility to its installed production capacity of one million tonnes of liquid steel annually.

Under the agreement, PSML is expected to rehabilitate the integrated steel plant and commence commercial operations within 18 to 24 months, subject to the sustained availability of iron ore.

The deal followed the execution of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML on August 20, 2026.
Speaking on the development, the Minister of Steel Development, Shuaibu Abubakar Audu, described the revival of the plant as a major step towards rebuilding Nigeria's industrial capacity.

Audu said the project would go beyond restoring an abandoned industrial facility, stressing that it would help rebuild Nigeria's capacity to produce steel locally, support downstream industries and create employment opportunities for young Nigerians.

The Delta Steel Plant was commissioned in 1982 with an installed capacity of one million tonnes of liquid steel annually. It was established as an integrated steel plant but subsequently suffered years of operational challenges.

The Federal Government privatised the company in 2005, selling it to Global Infrastructure Holdings Limited as part of efforts to attract private investment for its revival.

The Asset Management Corporation of Nigeria (AMCON) later sold the company to PSML in 2015 as part of efforts to recover outstanding debts.
The Ministry of Steel Development said the plant has not operated as an integrated steel facility since 2015.
The latest agreement is also expected to facilitate the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits, which are expected to provide raw materials for the Delta Steel Plant and strengthen Nigeria's domestic steel supply chain.

The project is projected to create about 5,000 direct jobs 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.

The revival is also expected to increase freight movement along the Central Rail Line and improve the utilisation of the Delta Steel Company's jetty.

The Minister assured that the Federal Government would continue to collaborate with private-sector investors to improve access to raw materials, infrastructure and other requirements necessary for the growth of Nigeria's steel industry.

He, however, stressed the need for the agreement to translate into tangible results, including actual mine development, rehabilitation of the steel plant, commencement of commercial steel production and the creation of sustainable employment within the agreed 18-to-24-month implementation period.

The revival of the Delta Steel Plant is expected to strengthen Nigeria's manufacturing sector, reduce dependence on imported steel products and position Delta State as a major hub for industrial development and employment in the country.