Audu (centre), flanked by the Permanent Secretary, Amb. Nura Abba Rimi; the Ag. Sole Administrator/CEO, National Iron Ore Mining Company (NIOMCO), Isinmidun Festus Loto; Chairman, Premium Steel and Mines Limited, Sahil Vaswani; and Vice Chairman, Premium Steel and Mines Limited, Mahesh Vaswani, during the signing of the Agreement for the Revival of the former Delta Steel Company, now Premium Steel and Mines Limited, held on Thursday, 20 August 2026, at the Ministry’s Headquarters, Abuja. CREDIT: Steel Ministry
The Federal Government has taken fresh steps to revive the long-dormant Delta Steel Company in Ovwian-Aladja, Delta State, with its current owners, Premium Steel and Mines Limited, committing more than $1.3bn to the rehabilitation and modernisation of the facility.
Under the new plan, the company is expected to restore the plant to commercial production within 18 to 24 months and ultimately return it to its installed capacity of one million metric tonnes of liquid steel annually.
The revival effort received a major boost on Thursday with the signing of a Sub-lease and Operations Agreement between the National Iron Ore Mining Company, Itakpe, and Premium Steel and Mines Limited. The agreement is designed to ensure sustainable access to iron ore, a critical requirement for the integrated steel plant’s operations.
Commissioned in 1982 with an installed capacity of one million tonnes of liquid steel per year, Delta Steel was once one of Nigeria’s most ambitious industrial projects. However, years of operational challenges saw the plant operate at only about 25 per cent of its designed capacity before eventually shutting down.
In a statement issued on Thursday, the Head of Press and Public Relations at the Federal Ministry of Steel Development, Salamatu Jibaniya, described the agreement as a significant milestone in efforts to reposition Nigeria’s legacy steel assets.
“The Federal Ministry of Steel Development has signed an agreement aimed at facilitating the revival and full operationalisation of the Delta Steel Company, now known as Premium Steel and Mines Limited, Ovwian-Aladja, Delta State,” the statement said.
The company was privatised in 2005 to Global Infrastructure Holdings Limited as part of efforts to attract private investment and restore operations. In 2015, the Asset Management Corporation of Nigeria re-sold the facility to Premium Steel and Mines Limited as part of efforts to recover unserviceable debts.
Despite the ownership changes, the facility has remained inactive as an integrated steel plant.
Under the latest arrangement, Premium Steel and Mines Limited will invest more than $1.3bn in raw material exploration and exploitation, alongside the rehabilitation and modernisation of the steel complex.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the project was about more than reviving an abandoned industrial facility, stressing that domestic steel production was essential to Nigeria’s industrialisation and economic diversification.
“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,” Audu said.
According to the ministry, the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, particularly the administration’s drive to expand local manufacturing, create jobs and unlock dormant productive assets.
The new agreement will also provide a framework for cooperation between the Federal Government and Premium Steel and Mines Limited on the rehabilitation and sustainable operation of the plant. It is expected to support the reactivation of the National Iron Ore Mining Company and facilitate the development of the Ajabanoko iron ore deposits.
The Federal Government estimates that the project could create about 5,000 direct jobs and more than 20,000 indirect jobs. It is also expected to contribute to Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
With the agreement now signed, attention will shift to implementation. The Ministry of Steel Development said the project must move beyond paperwork to actual mine development, plant rehabilitation, commercial steel production and sustainable job creation within the agreed 18-to-24-month timeframe.
