Despite Decades of Inactivity, Ajaokuta Workers to Receive N6bn in 2026 Budget
Despite Decades of Inactivity, Ajaokuta Workers to Receive N6bn in 2026 Budget
The Federal Government has proposed to spend over N6 billion on salaries and staff-related costs for the Ajaokuta Steel Company Limited in the 2026 budget, even though the steel plant has remained non-operational for more than four decades.
Budget details show that the company was allocated N6.69 billion for 2026, with N6.04 billion about 90 per cent earmarked for personnel costs.
This includes payments for wages, allowances, pensions, health insurance and other staff contributions, reinforcing Ajaokuta’s long-standing reputation as a government-funded enterprise with no production output.
In contrast, funds meant for actual operations remain minimal. The 2026 budget provides N233.6 million for overhead costs and just N410.8 million for capital projects indicating limited investment toward reviving steel production or completing the abandoned industrial complex.
Records also show that the company is expected to generate no revenue in 2026 and will receive no grants, leaving it fully dependent on federal funding.
While some capital funds are allocated for equipment purchases, repairs and minor construction works, analysts say the amounts fall far below what is required to restart a heavy steel plant.
A comparison with previous years reveals a consistent pattern. Personnel spending at Ajaokuta has continued to rise regardless of output, with salary provisions increasing sharply between 2024 and 2025 before dipping slightly in 2026 without any shift toward production-focused investment.
Separately, the Ministry of Steel Development allocated additional funds for revitalisation planning, including feasibility studies, environmental assessments and investment mobilisation for Ajaokuta and the National Iron Ore Mining Company.
However, these funds are largely preparatory and do not translate into immediate steel production.
Originally conceived in 1979 as the backbone of Nigeria’s industrialisation, the Ajaokuta Integrated Steel Complex was designed to reduce steel imports and stimulate manufacturing. Although most of its units were reportedly completed by the mid-1990s, the project has remained stalled due to mismanagement and repeated failed revival efforts.
Despite renewed talks with foreign partners in recent years and government assurances, the plant remains idle.
Yet, public records show that billions of naira continue to be spent annually on staff salaries, raising ongoing concerns about efficiency, accountability and the future of Nigeria’s long-delayed steel dream.
