WARRI, Nigeria – The Federal Government has executed a major industrial agreement to rehabilitate the dormant Delta Steel Company located in Ovwian-Aladja, Delta State, following a capital commitment of over $1.3 billion (approximately ₦2 trillion) from its current owners.
The rehabilitation framework was finalised on Thursday, August 20, 2026, through a Sublease and Operations Agreement signed between the federal National Iron Ore Mining Company (NIOMCO) in Itakpe and Premium Steel and Mines Limited (PSML). The partnership ensures a sustainable supply of iron ore required to power the integrated steel complex.
Okay News reports that under the terms of the agreement, Premium Steel and Mines Limited will deploy the $1.3 billion investment toward raw material exploration, facility modernisation, and the restoration of the plant to its original design capacity of one million metric tonnes of liquid steel annually. Commercial production is projected to commence within 18 to 24 months.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated that the revival of the strategic national asset aligns with President Bola Tinubu’s Renewed Hope Agenda by accelerating import substitution and economic diversification.
“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,” Audu said.
Federal authorities project that the resuscitation of the Delta Steel Plant, which initially commenced operations in 1982, will create approximately 5,000 direct jobs and over 20,000 indirect employment opportunities across the domestic steel and maritime logistics value chains.
