In a significant move towards revitalizing Nigeria's industrial sector, the Federal Government has signed a Sub-lease and Operations Agreement with Premium Steel and Mines Limited to revive the Delta Steel Company, which has been inactive for over a decade. The agreement was finalized on Thursday and marks a crucial step in the government's efforts to restore one of the country's most ambitious industrial projects.

Premium Steel and Mines Limited has pledged an investment exceeding $1.3 billion to rehabilitate and modernize the Delta Steel plant, located in Ovwian-Aladja, Delta State. The company aims to bring the facility back to commercial production within 18 to 24 months, with plans to restore its capacity to produce one million metric tonnes of liquid steel annually, contingent upon securing sustainable iron ore supplies.

The revival plan is expected to generate approximately 25,000 jobs, including 5,000 direct positions and over 20,000 indirect jobs. This initiative aligns with the Nigerian government's broader strategy to enhance local manufacturing, diversify the economy, and support job creation, as emphasized by the Minister of Steel Development, Prince Shuaibu Abubakar Audu.

Audu stated, "The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life. It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation."

The Delta Steel Company was originally commissioned in 1982 and had an installed capacity of one million metric tonnes of liquid steel per year. However, it faced operational difficulties and ultimately ceased production, operating at only about 25% of its designed capacity before its shutdown. The government privatised the company in 2005 to attract private investment, but it was later re-sold to Premium Steel and Mines Limited in 2015 after the Asset Management Corporation of Nigeria sought to recover debts.

The current agreement is seen as a vital framework for collaboration between the Federal Government and Premium Steel and Mines Limited, aimed at ensuring the sustainable operation of the plant. It is also expected to facilitate the reactivation of the National Iron Ore Mining Company and the development of the Ajabanoko iron ore deposits, which are essential for the steel production process.

As the government gears up for this ambitious project, the focus will now shift to the successful implementation of the agreement. The Ministry of Steel Development has emphasized the need for tangible progress beyond mere documentation, urging all stakeholders to prioritize actual mine development, plant rehabilitation, and the establishment of a sustainable employment framework within the specified timeline. This revival could potentially play a pivotal role in achieving Nigeria's goal of producing 10 million tonnes of liquid steel annually by 2030.