Nigeria holds an estimated three billion tonnes of iron ore reserves, enough to sustain the Ajaokuta Steel Complex for decades, according to the National Steel Raw Materials Exploration Agency (NSRMEA). Director-General Kolawole Ogunbiyi confirmed these vast deposits in Kaduna, asserting that raw material supply won't delay steel production once the plant begins operations. This declaration comes as the agency outlines its readiness to support the revival of Nigeria’s steel industry, primarily through the supply of critical raw materials.
Extensive geological exploration has confirmed Nigeria's abundant deposits of iron ore, limestone, and coal, the three essential raw materials for steel production. Iron ore alone accounts for about 95 percent of steel-making inputs. The estimated three billion tonnes of iron ore reserves represent a major strategic asset, positioned to drive industrialization and reduce dependence on imported steel. Ogunbiyi stated that the iron ore in Itakpe is unparalleled in quality and quantity, having undergone laboratory tests to confirm its viability for steel rolling. The Itakpe deposit in Kogi State is considered the backbone of Nigeria’s integrated steel development program, prized for its high iron content and low impurity levels.
Unrealized Wealth, Unpaid Labor
Despite these proven reserves, mining activities remain significantly below potential. The Ajaokuta Steel Complex, intended as the principal off-taker for the ore, has yet to commence full commercial operations. This idleness means the abundance of Itakpe iron ore cannot be fully utilized, as there are no significant buyers like the Ajaokuta plant to process the raw materials into finished steel products. The original framework for the integrated steel project assigned the National Iron Ore Mining Company, Itakpe, the responsibility of mining ore specifically for the Ajaokuta Steel Company.
Limestone deposits, also crucial for steel, are currently licensed mainly for cement production. This diversion to private cement interests occurs because Ajaokuta remains non-operational, despite sufficient quantities being available for future steel manufacturing. Nigeria also possesses large coal deposits in Obi-Lafia, Nasarawa State, though additional in-seam exploration is required to determine their commercial viability and suitability for steel production. Ogunbiyi appealed for government support to commence this exploration, aiming to reduce impurities for better steel production.
The State's Role in Capital Preparation
The NSRMEA’s laboratory plays a critical role in testing mineral quality before detailed exploration establishes commercially viable reserves. Ogunbiyi appealed to the Federal Government for increased funding for mineral exploration, citing the need for modern laboratory equipment, drones, and advanced exploration technologies. He explicitly stated that improved funding would enable the agency to generate reliable geological data, specifically to attract greater foreign direct investment into Nigeria’s mining and steel sectors.
This push aligns with broader state efforts to facilitate capital accumulation. Ogunbiyi called for stronger collaboration among government, investors, technology partners, and industry stakeholders to fast-track the steel industry's revival. Minister of Steel Development, Prince Shuaibu Abubakar Audu, is actively working to attract "strategic investors" to accelerate steel production at Ajaokuta. The stated benefits of revival include diversifying Nigeria’s economy, creating thousands of jobs, boosting local manufacturing, and reducing dependence on crude oil exports.
Billions for Investors, Not the People
The NSRMEA boss affirmed that the agency’s activities align with President Bola Ahmed Tinubu’s policy of ending the export of raw minerals without local value addition. This policy, however, appears primarily focused on attracting capital for processing rather than ensuring direct public ownership or worker control. The Federal Government’s Early-Stage Mineral Exploration and Research Grant Endowment initiative seeks to unlock more than $750 billion worth of untapped mineral resources. This is to be achieved through expanded geological research, de-risked exploration, and increased local processing of strategic minerals, including iron ore, limestone, coal, gold, and lithium.
Ogunbiyi maintained that with sustained investment in exploration and the eventual take-off of the Ajaokuta Steel Complex, Nigeria possesses the raw material base to build a globally competitive steel industry. This vision of "long-term economic growth and industrial transformation" is presented within a framework that prioritizes attracting external capital and "strategic investors" to extract value from the nation's collective resources.