Aliko Dangote, Africa’s richest man, has expressed skepticism about the future of the Ajaokuta Steel Company, suggesting that the facility may be beyond revival.
In a video shared on social media, Dangote emphasized the importance of a thriving steel sector for Nigeria’s industrial growth and economic development.
He argued that Ajaokuta’s long-standing challenges make it unlikely to function as intended.
Dangote compared efforts to resuscitate the steel plant to trying to run outdated technology in a world dominated by modern advancements.
“There is no nation that you can build without a steel industry, and honestly, within us here, Ajaokuta will not work,” he said. “It’s like trying to compare an old Volkswagen to a modern Kia – things have changed.”
He stressed the need for adaptation in a rapidly evolving world, saying: “You have to change, or you will become archaic.”
Dangote likened trying to revive Ajaokuta to “going to the graveyard to bring a dead person or to the hospital to bring somebody who is on the dying bed to come and run 100 meters – it’s totally impossible.”
Ajaokuta Steel Company has a chequered history, having been built between 1979 and the mid-1990s but never operating optimally.
Despite efforts by different governments, the facility has remained moribund for over two decades.
In 2022, the Nigerian government agreed to pay $496 million to settle an Indian firm’s claim over the facility.
A Russian consortium signed an agreement with the government in September 2023 to rehabilitate, complete, and operate the Ajaokuta Steel Plant and National Iron Ore Mining Company.