FG, PSML sign $1.3bn deal to revive Delta steel coy

The Federal Government has signed a sub-lease agreement for the restoration and full operationalisation of the Delta Steel Company, now known as Premium Steel and Mines Limited (PSML), Ovwian-Aladja in Delta State.

The agreement was between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML.

The Head of Press and Public Relations, Federal Ministry of Steel Development, Salamatu Jibaniya, who announced the signing via a statement issued on Thursday, August 20, 2026, said PSML has committed to investing more than $1.3 billion on raw materials.

The agreement is expected to facilitate the reactivation of the integrated steel plant, strengthen Nigeria’s domestic steel production capacity, and reduce dependence on imported steel products.

Jibaniya quoted the minister, Shuaibu Audi, as saying that the PSML also covered steel plant rehabilitation and modernisation for sustainable operation to achieve full capacity production of one million metric tonnes of liquid steel per annum.

“It is also expected to commence commercial operations within 18 to 24 months, subject to sustainable iron ore supply,” Audi added.

The minister described the agreement as a major step in the federal government’s efforts to reposition Nigeria’s steel assets to drive industrialisation, economic diversification, job creation, and sustainable national development.

He said the successful implementation of the agreement would support the reactivation of NIOMCO and development of the Ajabanoko iron ore deposits.

Audi stated: The project is expected to create about 5,000 direct and more than 20,000 indirect jobs”

“The project will also support Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.

“Increased production will boost freight movement along the Central Rail Line and encourage greater utilisation of the Delta Steel Company Jetty.

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“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.”

Audi added that the federal government would continue to work with responsible private-sector investors to unlock the enormous potential of Nigeria’s steel sector.

The Delta Steel Plant was established in 1982 as an integrated steel plant, with an installed capacity of one million tonnes of liquid steel per annum.

The plant eventually ceased operating as an integrated steel facility, prompting renewed efforts by the federal government to attract private-sector investment for its reactivation.