Reviving Ajaokuta Steel Through Privatization Could Unlock $115bn GDP and 70,000 Jobs, Says Economist

Prof. Banji Oyelaran-Oyeyinka explains how privatizing Ajaokuta Steel could create 70,000 jobs and save Nigeria $9.1bn in foreign exchange.

By: AXL Media

Published: Apr 17, 2026, 11:16 AM EDT

Source: Information for this report was sourced from Punch Newspapers

The Massive Economic Potential of a Functional Steel Sector

Nigeria’s industrial landscape could witness a tectonic shift if the long-dormant Ajaokuta Steel Company is finally revitalized through privatization. Speaking at a virtual international conference on Friday, Prof. Banji Oyelaran-Oyeyinka, a renowned economist, highlighted that the plant holds the key to a $115bn boost in national GDP. According to Oyelaran-Oyeyinka, the revival would not only reclaim Nigeria's economic sovereignty but also create approximately 70,000 direct jobs, providing a much-needed foundation for a self-reliant industrial future.

Ending Decades of Public Sector Paralysis

The economist described Ajaokuta as a "monumental white elephant," noting that between $6bn and $10bn has been sunk into the project since the 1970s without achieving industrial-scale production. He argued that the era of government control must end, as it has yielded only "progress through paralysis." Oyelaran-Oyeyinka proposed a majority ownership model for a capable Nigerian consortium, paired with foreign partners possessing a proven track record in steel operations. He cited South Korea’s POSCO as a successful global precedent for such strategic private-sector transformation.

Foreign Exchange Savings and Industrial Catch-up

Currently, Nigeria spends an estimated $4bn annually on steel imports, a drain on foreign reserves that hampers local manufacturing. Oyelaran-Oyeyinka pointed out that reviving Ajaokuta could save the country $9.1bn in foreign exchange over time. He warned that for a nation of over 200 million people, the absence of primary steel production is a "travesty" that keeps Nigeria dependent on imports while global peers leverage steel for prosperity. He urged the administration of President Bola Tinubu to act decisively, suggesting a "Dangote Refinery solution" if entrenched interests continue to block reform.