The National Steel Raw Materials Exploration Agency says Nigeria holds an estimated three billion tons of iron ore reserves, enough to sustain the Ajaokuta Steel Complex for decades once the long delayed plant begins production.

Director General Kolawole Ogunbiyi said extensive geological exploration has confirmed abundant deposits of iron ore, limestone and coal, the three key raw materials for steel production, with the Itakpe deposit in Kogi State forming the backbone of the country’s integrated steel programme due to its high iron content and low impurity levels. He said mining activity at Itakpe has remained below potential because Ajaokuta, the intended off taker for the ore, has yet to commence full commercial operations, even though extensive surveys conducted with Russian experts decades ago confirmed the scale of the reserves.

Ogunbiyi said the country also holds large coal deposits in Obi Lafia, Nasarawa State, though further exploration is needed to reduce impurities and confirm commercial viability for steel production, and appealed for increased government funding for exploration, including modern laboratory equipment and drone technology, to attract greater investment into the mining and steel sectors. He expressed confidence that ongoing efforts by the Minister of Steel Development to attract strategic investors would help accelerate the start of production at Ajaokuta, saying reviving the steel industry would create jobs, boost manufacturing and reduce reliance on crude oil exports, in line with the federal government’s policy of ending raw mineral exports without local value addition.