Privatization of Ajaokuta Steel Company could generate $115 billion GDP and 70,000 jobs, expert says

Professor Banji Oyelaran-Oyeyinka, a renowned economist and former Senior Special Adviser to the President of the African Development Bank on Industrialisation, stated that privatizing the Ajaokuta Steel Company could add up to $115 billion to Nigeria's GDP and create 70,000 jobs. Speaking at a virtual international conference titled “The Ajaokuta Phenomenon in Tinubu’s Era: A Turning Point or Another Missed Opportunity?”, Oyelaran-Oyeyinka emphasized the steel plant's importance to Nigeria's industrial future. He highlighted potential gains including $9.1 billion in foreign exchange savings. He advocated for the urgent privatization of the steel complex, arguing that decades of government control have been unsuccessful. Oyelaran-Oyeyinka proposed that a capable Nigerian consortium, supported by experienced foreign partners, should acquire the plant, citing South Korea’s POSCO as a successful model for private sector involvement. He described Ajaokuta as a “monumental white elephant,” noting that despite investments of $6-10 billion since the 1970s, the plant remains idle and Nigeria imports approximately $4 billion worth of steel annually. He warned that if reforms are obstructed, an alternative private-sector-led model, similar to the Dangote Refinery solution, should be considered. Other panelists at the conference, including Professor Oladiran Abubakare and policy analyst Collins Nweke, echoed concerns about corruption and execution failures, stressing that Ajaokuta's suc