Importance of Ajaokuta Steel Mines to the Industrialization of Nigeria

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Table of Contents

  • The economy of Nigeria
  • Benefits of steel in our economy
  • Steel would serve as a very great Index of Power
    Steel would serve as an Economic Nerve Influencer
    Steel and Industrilization
    Steel making as a way of having foreign earnings
  • Various methods of iron processing and steel production in different parts of the country
  • Conclusion

The Ajaokuta Steel Company is one of the steel mill companies located in a town called Ajaokuta, Kogi state. It has been physically established on a 24,000 hectares / 59,000 acres site in 1979. This Ajaokuta steel company is the most recognized steel mill in Nigeria, and it is was built to be able to have the capacity of a very large coke oven and also to have by products plants that are much bigger compared all the refineries in the Nigerian Industry .Although there has been no production and it has not been fucnctional since the previous year.This venture was led by the Russian Federation (known officially as the Union of Soviet Socialist Republics) which is in Eurasia and exist as a federation for socialist. In the year 1967, the experts from the Soviet nion were recommended for the banded iron in the country because of then the sediments were of a very low standard for the steelmaking process. In the early 70’s, there was a discovery of the required vale of Iron ore in Delta, Ajabonoko and some other required places.

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The Steel Company was engulfed in the late seventies, and the mill was able to reach a completion of 98% in the year 1994. Another project was supposed to take place which was suppose to involve the transportation of raw materials to contribute to the Ajaokuta steel mill with resources and link it to the global market. This arrangement was supposed to take place in the late eighties to initialize the creation of Nigeria’s first standard guage transport system that would be connected from the mines at Itakpe, Delta to the mills at Ajaokuta and keep linking over Atlantic Ocean. Although after much expectations and investments the two projects were not properly managed or planned and remained non functional even after three decades. The steel mill has not been able to yield to the production of anything even as of the last month of the previous year, although fourty out of the fourty three units at the space are fully finished. There were a lot of unsuccessful endeavors to turn it to the private sector, the government of Nigeria took it into their care in 2016. The project never saw the light of the day whilethe link connecting Delta and Ajaokuta has been vandalized. An Abuja- Kaduna standard Gauge Railway which was completed my a construction company name The China Civil Engineering Construction Corporation was contracted to fix the Itakpe to Ajaokuta-Warri tracks to commence work in 2018.

The economy of Nigeria

Nigeria is a middle class mixed economy and rising market with the expansion of different sectors such include service, communications, manufacturing, technology and the entertainment sector. It is the 23rd largest country in terms of obtaining power parity and the 30th biggest economy in the world in terms of nominal GDP. Nigeria from statistics is said to have the largest economy in Africa and most recently the re emerging of its manufacturing sector became the largest in Africa as of the year 2013 and it has been able to produce a large percentage of products and resources used in Western Africa. The country has suffered from decades of lack of proper management, and various economic setbacks of the previous years. Although there are a lot of revenue contributions to the economy of Nigeria, the oil sector has been able to contribute majorly. Oil revenues contribute about two-third of state revenues, oil alone is able to contribute 9% of the GDP but it produces about 2.7% of the oil supply in the world in comparison to other countries like Saudi Arabia, Russia, and also the United States of America.

The Agricultural sector of Nigeria has not been able to keep up with the rapid population growth of the growth. As for the industry that deals with mining in Nigeria, the resources in the country accounts for only about 0.3% of its GDP. The domestic mining industry has been mismanaged and it is presently underdeveloped therefore this has led to the country importing materials that could have been produced domestically such as salt or iron ore. The Federal government of Nigeria is the only body that has the ability to grant work to groups so as be able to research, continue the mining resources and sell mineral resources since the year 1903. Although in 1956 the discovery of oil really caused a big downfall to the mineral extraction companies as both the government and most of the companies begins to focus on this new origination. Nigeria has many residuals of banded iron but the main deposits are in Itakpe and the state of Kogi. The Iron Ore Mining company was established in 1979 and permissions were made available for work to commence there which includes the goal to research , exploit, procedures and give banded iron concentrate to the Ajaokuta steel company in Ajaokuta, Kogi and Delta steel company in Aladja, Delta. Also one of the projects that the government has largely contributed to foreign banded iron operations in guinea.

Benefits of steel in our economy

The steel Industry as an aid to improving the National economy;The steel industry would always serves as an aid to help the improvement of the development of the nation as a whole and an economy boosted to the development of a country industrially. This Industry can help to improve our GDP and would serve as a great backbone to the renewal of the economy of our great nation when all the important procedures were taken accordingly. The importance of having an operational steel industry would give very functional and economically improved country. The United Nations Industrial Development Organization stated that “whether a developing country should develop it’ own iron and steel industry depends on various relying factors”. Therefore it is of great advantage for a country to be able to develop its own iron and steel industry most especially if the necessary raw materials have been provided.

In the present civilization age it has been mainly due to man’s knowledge and applications of metals. If there were no metals there would be no railways, automobiles, ships, electrical motors, no electrical power and so on. There would also be no modern bridges or massive oil rigs also even down to the basic things we need for our daily use ranging groom knives, blades, forks although they can also be made from wood but it would not be as effective as the ones coined out of metals. The steel sector industries are different from other industrial establishments in many aspects. It is a very strategic sector that serves a long time industrial purpose of a nation through their very unique role as the main channels to the development of other key industries. Although a lot of investments go into the industry which can look discouraging it would yield a very beneficial investment for the country at large. Steel firstly became fully utilized during the World War II to help build the Industrial society that had achieved so much prosperity in the industrialized world. Below I would state some of the important purposes of Steel that would serve as help to our Economy.

Steel would serve as a very great Index of Power

Since the Second World War, most of the nations of the world have come to be able to appreciate the important use of steel as the foundation for a rapid technological progress and it has also become an Index of National power. It helped Britain to launch the first Industrial revolution and Western Europe to be able to have colony over most countries of the world. In the year 1980 the world output was given an estimate of about 900 million tonnes of raw steel. Steel is very necessary and the most sufficient condition for a nation’s power base. Therefore it would be of great benefit to us.

Steel would serve as an Economic Nerve Influencer

Steelmaking has a very great importance which does not restrict it to immediate or direct application. For the smelting process alone there are series of economical activities that would have to be followed for the input of raw materials and this energy activities include as stated below:

  • Iron ore: Mining, transportation of materials back and forth, beneficiation process, preparation processes;
  • Lime stone: Quarrying and calciniating processess;
  • Refractory Bricks: Clay preparation and firing;
  • Additives: Manufacturing of nozzles;
  • Air and fuel: Pre-heating and atomizing of oil and gas;
  • Refractory Bricks: Clay preparation and firing;
  • Energy: Power construction, generation and distribution, services, etc.
  • Coke: Coal mining, sizing and preparation, coking in coke
  • Refractory Bricks: Clay preparation and firing of ovens.

Added to these vast scale financial aspects and mechanical exercises related with the crude materials utilized for steel making, are auxiliary downstream foundry, machining, manufacturing and preparing businesses, and also broad administrations, for example, transportation and supplies which are given a major lift. Factual confirmation shows that the generation of crude steel is taken care of by more than twenty kinds of auxiliary businesses furthermore, related monetary exercises: These do exclude proceeding investigation into the further improvement, usage and appropriation of crude materials assets and innovation.

Steel and Industrilization

In more developed economies such a USA, Germany, France, Europe . The aspect of Industrialization has been linked with with capacity to deliver purchaser and capital products which upgrade local independence and decrease outside trade waste; what’s more, capacity to advance business age and neighborhood labor improvement and henceforth increment in per capital wage, acquiring power and potential to contribute. The part of the Iron and Steel Industry in national industrialization is pre-famous. This is on the grounds that steel remains the fundamental crude material for a large group of assembling exercises and henceforth the material spine for national monetary advancement when all is said in done. Malaysia sends out 75% of its steel items to different nations.

Steel making as a way of having foreign earnings

The measure of outside trade being exhausted on the importation of steel today keeps running into billions of dollars. This epic measure of cash is an unsatisfactory misuse of our pitiful assets and could have been occupied to other indispensable divisions of the economy. On the other hand, it is normal that the Ajaokuta Steel Company Limited when finished will create tremendous outside trade through fare. It is additionally visualized that the results of organization would be sent out to the West African sub-district and other African nations.

Various methods of iron processing and steel production in different parts of the country

The Ajaokuta Steel plant design was created on the intital development using the blast furnace route to iron production with an initial capacity of about 1.3 million tones of liquid steel yearly with an inbuilt capacity to enable possible future expansions ranging from 2.5 million tones to about 5.2 million tones after the intial stage. The first costings were ranging from a whooping 2.5 billion naira.The Ajaokuta Steel Company, the motor of mechanical liberation of Nigeria comprises of the accompanying procedure units:

A) Crude materials planning unit (counting the sintering plant)

B) Coke-broiler and by item plant

C) Press making unit

D) Steel making unit

E) Moving factory

F) General Auxiliary unit.

Later on the company was created and determined in a particular Russian System (GOSH) although later on an American based company came and took advantage of their position and turned the company into a negative fate.

Nigeria has been able to surpass a lot of African countries by been able to build a large and fully equipped steel mill. The problem is even after investing so much money into this project, we have not been able to reap anything beneficial from this project. Our economy is seriously suffering down fall. Our Naira value keeps dropping and our youths are graduating in millions yearly and still cannot find good, profitable jobs.


I have come to the concluding part of this term paper on the industrialization of The truth is that not only the steel sector lacks improvement in our dear nation but many other segments that would have been of great benefits to us. Well as Engineers and Technologists we have been equipped with enough knowledge from our educational backgrounds to be able to revive the steel mill once again. Also on this note I end by laying emphasis on how we need the givernment’s assistance to be able to see Ajaokuta come alive once more. No more embezzlement of money that is supposed to help revive the steel mill and we would soon see ourselves as one of the front liners in Africa’s steel industry.

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