Dangote Declares Ajaokuta Steel a Dead Dream, Says It Mirrors Nigeria’s Refineries of Endless Promises

For over four decades, the Ajaokuta Steel Company has stood as a national paradox, grand in vision but hollow in delivery. Conceived in 1979 to serve as the “bedrock of Nigeria’s industrialisation,” the massive steel complex in Kogi State has consumed more than $10 billion without producing a single sheet of steel.

Now, Africa’s richest man, Aliko Dangote, has delivered the bluntest verdict yet: Ajaokuta will not work.

In a video trending on X, the Dangote Group founder described the steel plant as technologically obsolete and beyond redemption. While acknowledging the importance of a strong steel sector to national development, he compared attempts to revive Ajaokuta to raising the dead.

“There is no nation that you can build without a steel industry. But honestly, within us here, Ajaokuta will not work. We can keep deceiving ourselves and keep being passionate about it, but it’s not possible,” Dangote said.

Using analogies, he likened Ajaokuta to an outdated Volkswagen Igala, impossible to compare with today’s advanced vehicles like Kia. “Things have changed and all of us have to keep changing—or we become archaic,” he warned.

Ajaokuta and the Four Refineries: Twins of False Hope

Dangote’s verdict on Ajaokuta resonates with another sore point in Nigeria’s industrial journey: the four government-owned refineries in Port Harcourt, Warri, and Kaduna. Just like Ajaokuta, these refineries receive billions in annual maintenance funds, yet remain perpetually idle.

Every year, budgets allocate new lifelines with promises of “revival,” but Nigerians keep waiting while billions vanish into a black hole. In 2024, the government earmarked ₦4.45 billion for Ajaokuta Steel; in 2025, that figure rose to ₦6.81 billion, with 91 per cent of the money going to salaries alone—despite zero output. The same pattern repeats itself with the refineries: funds in, promises out, but no fuel in the pumps.

This cycle of deception mirrors a governance culture where prestige projects are kept alive not by performance but by political rhetoric. Both Ajaokuta and the refineries serve as cautionary tales of what happens when hope is weaponized for optics instead of results.

The Monument of Mismanagement

Successive governments—from military to civilian—have proclaimed Ajaokuta “almost ready” for operation. Yet, despite swallowing over $10 billion, the plant remains incomplete, a monument to wasted ambition and mismanagement.

Reflection: Time for Hard Choices

Dangote’s candour forces a national reckoning. Should Nigeria continue to pour scarce resources into lifeless projects like Ajaokuta and the refineries, or should it embrace new investments built on modern technology?

The truth is bitter but unavoidable: both Ajaokuta Steel and the four refineries are relics of an era long gone. They may inspire nostalgia and political speeches, but in practical terms, they drain billions that could be invested in forward-looking industries.

For a country facing mounting debt, unemployment, and a volatile currency, the lesson is clear—hope cannot power machines. And no amount of annual budget allocations can breathe life into outdated facilities designed for a world that has moved on.

As Dangote put it, “It’s like going to the hospital to bring somebody from his dying bed to run 100 meters—it’s impossible.”

Aliko Dangote delivers a brutal verdict on Ajaokuta Steel Company, calling it a dead dream draining Nigeria’s billions. He likens it to the nation’s four refineries—projects that swallow funds yearly but remain lifeless.