The Federal Government has proposed N6.04 billion in the 2026 budget for personnel costs at the Ajaokuta Steel Company Limited, despite the plant remaining non-operational for more than 40 years. Out of a total allocation of N6.69 billion for the company, about 90 percent is earmarked for salaries, allowances, and social contributions, reinforcing the steel complex’s status as a non-performing public enterprise.
Personnel expenses include N4.79 billion for salaries, N1.25 billion for allowances and social contributions, with further provisions for pension, NHIS, and employee compensation insurance. By contrast, overhead costs are limited to N233.63 million, and capital expenditure stands at just N410.8 million, highlighting minimal investment toward reviving steel production.
Year-on-year figures indicate that while the 2026 personnel allocation is slightly below the N6.21 billion earmarked in 2025, recurrent spending on staff remains the company’s core budget priority. Less than seven percent of the budget is dedicated to capital investment, mostly covering office infrastructure, electricity works, and minor equipment purchases.
The 2026 budget also includes provisions for the revitalisation of Ajaokuta Steel and the National Iron Ore Mining Company under the Ministry of Steel Development. N150.99 million is allocated to ongoing revival projects, and N1.06 billion is set aside for project preparation, including feasibility studies and investment mobilisation, signaling continued preparatory spending despite the plant’s inactivity.
Conceived in 1979 as Nigeria’s flagship industrial project, the Ajaokuta Integrated Steel Complex was intended to drive industrialisation, reduce steel imports, and support economic diversification. More than four decades later, budgetary allocations reveal the facility functions largely as a payroll institution, with successive governments funding salaries while steel production remains at zero.
