The signed sub-lease agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and Premium Steel and Mines Limited (PSML) represents a decisive turning point for Nigeria’s heavy industrial strategy.
By committing over $1.3 billion toward raw material exploration, plant modernisation, and commercial resuscitation of the former Delta Steel Company in Ovwian-Aladja, the deal signed on Thursday, August 20, 2026 for the restoration and full operationalisation of the Delta Steel Company now known as Premium Steel and Mines Limited (PSML), Ovwian-Aladja, Delta. targets an initial capacity of one million metric tonnes of liquid steel annually within an 18-to-24-month execution window.
This resuscitation impacts the broader socio-economic landscape of Nigeria across several key dimensions:
Direct Economic and Industrial Impacts
Foreign Exchange Preservation and Trade Balance: Nigeria spends billions of dollars annually importing finished steel products and raw billets. Restoring liquid steel capacity locally addresses a core drain on foreign reserves, stabilizes the naira, and shields domestic construction and manufacturing sectors from international supply chain shocks.
Upstream and Downstream Integration: The sub-lease bridges the critical gap between NIOMCO’s iron ore deposits in Itakpe (and the Ajabanoko reserves) and PSML’s processing infrastructure. It breathes operational purpose into the 327-km Itakpe–Warri Central Rail Line, driving bulk freight revenue and increasing utilisation of the Delta Steel Jetty.
Job Creation and Regional Revitalisation: The project is projected to generate 5,000 direct positions and over 20,000 indirect jobs across mining, logistics, fabrication, and industrial maintenance. For the host communities in Delta State, this offers a rebirth for a local economy dormant since the early plant closures.
| Key Economic Metric | Targeted Impact |
| Private Capital Injection | > $1.3 Billion |
| Annual Liquid Steel Output | 1,000,000 Metric Tonnes |
| Employment Footprint | ~25,000 Total Jobs (5k Direct / 20k Indirect) |
| National Target Alignment | Contributes to 10 Million Tonnes/Year by 2030 Goal |
| Operational Timeline | 18 to 24 Months |
Critical Infrastructure Requirements
For this reactivation to meet its full potential, several operational prerequisites must remain stable:
Raw Material Consistency: Continuous feed of high-grade beneficiated iron ore from Itakpe via the central railway.
Power and Gas Infrastructure: Reliable, large-scale power generation and cost-effective gas tariffs required for Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) operations.
Logistics Coordination: Seamless integration between rail transport, local road networks, and maritime freight via the local jetty.
The sub-lease framework serves as a core anchor for the Renewed Hope Agenda’s industrial ambition.
If executed within the stipulated timeline, the revival of PSML moves Nigeria closer to domestic self-sufficiency in steel, laying the foundation for heavy manufacturing, defense, vehicle assembly, and large-scale civil engineering.
Reporting by Theresa Igata
