Stakeholders have continued to express mixed reactions over the 2026 budgetary allocation to the non-functional Ajaokuta Steel Company Limited (ASCL).
They spoke to the News Agency of Nigeria (NAN) on Monday in Abuja.
The ASCL established in 1979, is a critical asset conceived to drive Nigeria’s modernisation.
NAN reports that ASCL was allocated N6.69 billion in the 2026 Appropriation Bill, representing a 4.90 per cent decrease from the 2025 allocation of N7.03 billion.
The allocation covers personnel costs of N6.04 billion, overhead of N233.6 million and N410.8 million for capital projects.
While some stakeholders acknowledged the government’s efforts to resuscitate the company, particularly in line with President Bola Tinubu’s economic diversification agenda, others expressed concern that the allocation could be mismanaged.
Mr Philip Jakpor, the Executive Director of Renevyln Development Initiative (RDI), raised concerns over reports on the steel company’s state, in spite continued budgetary allocations for its revival.
Jakpor alleged that past administrations had repeatedly used ASCL to access funds without improving its status.
“It seems it has become a cash cow for some individuals in every administration; They pump billions of naira into its rehabilitation and yet the mill does not work a single day.
“So, we are not surprised that this administration has again budgeted N6.69 billion for it in the 2026 Appropriation,” he said.
Dr Abdullahi Jabi, Chairman of the North Central Zone of the Campaign for Democracy, Human Rights Advocacy, and Civil Society of Nigeria, underscored the importance of discipline for effective budget implementation.
According to him, budget ‘somersaults’ undermine Nigeria’s industrialisation efforts, which he described as crucial for the development of the steel sector.
He said critical sectors such as the steel sector should be prioritised, with professionals and specialised manpower engaged to boost the economy amid current challenges.
“Critical areas should have impact on the people beyond the signing of MoUs without what to show for it.
“We need a paradigm shift as promised in the electioneering campaign,” he said.
A government official, who requested anonymity said most funds were allocated to personnel costs to maintain the facility, while capital projects got only 6.1 per cent of the budget, insufficient to deliver significant change in the short term.
NAN recalls that Prof. Linus Asuquo, the Director-General (D-G) of the National Metallurgical Development Centre, Jos, at the maiden National Steel summit in 2025 said ASCL was costing the country more than N1 billion annually in pensions, salaries, taxes ,and administrative costs.
NAN reports that the Minister of Steel Development, Prince Shuaibu Audu, in his New Year message said that Nigeria had advanced in discussions with prospective investors in China to facilitate the revival of the Ajaokuta steel plant.
The ministry, he said, facilitated a 500 million dollars investment by NNPCL and its partners for the establishment of five mini-Liquefied Natural Gas plants within the Ajaokuta Steel plant.
Audu added that the ministry executed an MoU with the Federal Ministry of Defence for the local production of military hardware and the establishment of a Military Industrial Complex within the Ajaokuta Steel Company.
This he said would be done in collaboration with the Defence Industries Corporation of Nigeria.
The minister said that in spite of constraints in 2025, particularly the non-release of funds for the implementation of the 2025 budget, it sustained its reform momentum through the prudent implementation of key components of the 2024 Appropriation Bill.
