Federal Government Signs $1.3bn Deal to Revive Delta Steel Plant

The Federal Government has signed an agreement with Premium Steel and Mines Limited (PSML) to revive the Delta Steel Company in Ovwian-Aladja, Delta State. Delta Steel Plant revival will attract more than $1.3 billion in investment from PSML.

The agreement followed a deal signed on Thursday, August 20, 2026. The National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML signed the agreement. It will ensure a steady supply of iron ore for the plant.

The project forms part of the government’s plan to revive Nigeria’s steel industry. It also aims to boost industrialisation, create jobs and diversify the economy. The government hopes to reduce the country’s reliance on imported steel products.

The Delta Steel Plant revival is expected to create about 5,000 direct jobs and over 20,000 indirect jobs. It will also restore the plant’s capacity to produce one million metric tonnes of liquid steel annually.

Under the agreement, PSML will invest over $1.3 billion in raw material exploration and development. The company will also rehabilitate and modernise the steel plant. The investment will help restore its full production capacity.

PSML plans to restart the integrated steel plant within 18 to 24 months. It also aims to begin commercial operations within that period. However, the plan depends on a sustained supply of iron ore.

The Delta Steel Plant began operations in 1982. It was built as an integrated steel facility with a capacity of one million tonnes of liquid steel per year. However, operational challenges affected its performance.

The plant eventually shut down after operating at only about 25 per cent of its designed capacity.

The Federal Government privatised the company in 2005. It transferred ownership to Global Infrastructure Holdings Limited to attract private investment. In 2015, the Asset Management Corporation of Nigeria (AMCON) sold the facility to PSML to recover unserviceable debts.

The plant has since failed to operate as an integrated steel complex. The administration of President Bola Ahmed Tinubu is now seeking to reverse the situation.

Minister of Steel Development, Prince Shuaibu Abubakar Audu, described the project as a major step towards restoring Nigeria’s steel production capacity.

Audu said the revival would go beyond restoring an old industrial facility. He said it would help Nigeria produce steel locally and create opportunities for young people. It would also support downstream industries and promote sustainable industrialisation.

The project is also expected to improve rail and maritime logistics. It will increase freight movement along the central rail line. It will also promote greater use of the DSC jetty.

Audu said the plant’s revival supports President Tinubu’s Renewed Hope Agenda. He said it would boost local manufacturing, create jobs and strengthen Nigeria’s industrial capacity.

The minister said the Federal Government would continue to work with credible private investors. He stressed the need for adequate raw materials and infrastructure. He also highlighted effective policy coordination and a supportive business environment.

Audu commended the Ministers of Justice and Solid Minerals Development for supporting the agreement. He also praised PSML for its commitment to restoring the strategic national asset.