Dangote Declares: “No Nation Can Build Without Steel” – Casts Doubt on Ajaokuta’s Future

By: Abdullahi Inuwa 

The richest black man in the world, Alhaji Aliko Dangote, has once again stirred debate on Nigeria’s industrial future with a blunt assessment of the nation’s dormant steel sector. Speaking at a recent economic forum, Dangote declared that “no nation can build without steel” but lamented that the decades-old dream of reviving Ajaokuta Steel Company may never become reality.

His remarks struck a chord across policy circles, business communities, and the public, reopening discussions on why Nigeria, despite its vast mineral resources and decades of attempts, still lacks a functioning steel industry capable of powering large-scale industrialisation.

Steel: The Bedrock of Development

Dangote, whose own conglomerate dominates industries from cement to oil refining, stressed that steel is indispensable to national development. According to him, every developed economy in history — from the United States and Britain to China and India — rose on the back of a solid steel industry.

“You cannot industrialize without steel. From infrastructure to automobiles, from construction to defense, steel is the backbone. Without it, you are building on sand,” Dangote told participants.

For Nigeria, which aspires to diversify beyond oil and unlock manufacturing potential, the absence of a reliable steel base has long been seen as a crippling weakness.

Ajaokuta: A Project Frozen in Time

Located in Kogi State, Ajaokuta Steel Company was conceived in 1979 as a massive integrated steel plant that would catapult Nigeria into the league of industrial nations. More than four decades later, however, the multi-billion-dollar facility remains largely idle — a vast industrial complex with rusting equipment and unfinished projects.

Dangote minced no words in expressing doubt about its future.

“Ajaokuta may never work,” he said flatly, echoing the frustrations of generations of Nigerians who have watched the plant consume billions of dollars in investments, contract renegotiations, and political promises without producing commercial steel.

Over the years, successive administrations have pledged to revive the project, bringing in foreign technical partners from Russia to India, and most recently expressing interest in public-private partnerships. Yet each attempt has faltered under the weight of corruption scandals, policy inconsistency, legal disputes, and infrastructural bottlenecks.

Nigeria’s Missed Opportunities

Observers note that Nigeria’s steel failure stands in sharp contrast to other nations. When Ajaokuta was conceived, South Korea was still a developing country. Today, Korea’s steel giant, POSCO, is among the world’s largest producers, powering industries that export cars, ships, and electronics globally.

In contrast, Nigeria — Africa’s most populous nation — imports most of its steel products, spending billions annually on materials that could have been produced locally. This heavy reliance on imports not only drains foreign reserves but also undermines the competitiveness of Nigerian industries.

Dr. Chukwuemeka Nwosu, an economist at the University of Lagos, notes: “Nigeria’s inability to build a steel base has handicapped its industrial ambitions. Imagine if we had functional steel in the 1980s. Our auto industry, rail projects, shipyards, and construction sector would be decades ahead.”

Dangote’s Perspective

Dangote’s statement carries weight not just because of his wealth, but because of his track record in building industries many thought impossible. When he ventured into cement manufacturing, Nigeria was one of the world’s largest importers of cement. Today, thanks to Dangote Cement, the nation is self-sufficient and a net exporter. His $20 billion refinery in Lagos is on course to do the same for petroleum products.

Yet when it comes to steel, Dangote appears unconvinced that Nigeria’s largest state-owned project can deliver. Instead, he has urged the government to embrace fresh strategies, including attracting private capital, creating enabling policies, and prioritizing modular steel projects that can grow organically rather than attempting to salvage the Ajaokuta behemoth.

The Way Forward

Analysts argue that while Ajaokuta has become a symbol of Nigeria’s industrial failure, the country must not give up on steel altogether. Some suggest that government should finally cut its losses at Ajaokuta and instead incentivize new private-sector driven steel plants across the country. Others insist that with the right leadership and political will, Ajaokuta could still be revived.

Already, smaller steel mills exist in Lagos, Ogun, and Delta states, producing rebar and other construction materials, though far below national demand. Experts say scaling these operations while creating an enabling environment could be more practical than sinking more billions into Ajaokuta.

A National Conversation Rekindled

Dangote’s remarks have rekindled national conversation about what Nigeria truly needs to industrialize. On social media, citizens expressed both frustration and resignation. One user wrote: “If Dangote, who builds the impossible, says Ajaokuta may never work, then it is time to face reality.” Another countered: “No project is too big for Nigeria. We just need leadership and accountability.”

Politicians, meanwhile, are likely to feel the pressure of renewed public scrutiny. Ajaokuta has long been a campaign talking point, with every government promising to “finally make it work.” Dangote’s blunt words may force a reassessment of those promises.

Conclusion: The Steel That Binds or Breaks

For a nation eager to rise as Africa’s industrial giant, the absence of a functioning steel industry remains a glaring contradiction. Dangote’s warning is both a reality check and a call to action. Whether through Ajaokuta or alternative projects, Nigeria must find a way to anchor its development on steel — or risk remaining trapped in the cycle of import dependence.

As the billionaire put it: “No nation can build without steel.” The question now is whether Nigeria will finally heed the message, or allow Ajaokuta’s towering structures to stand forever as monuments of unfulfilled dreams.

Abdullahi Inuwa social Commentator ainuwa303@gmail.com