More than 40 years after launch, Ajaokuta Steel still waits to produce its first steel.
Yet, in the 2026 budget, the Federal Government plans to spend billions paying its workforce.
According to the proposed 2026 Appropriation Bill, Ajaokuta Steel receives ₦6.69 billion.
Notably, personnel costs take ₦6.04 billion, representing over 90% of the allocation.
A Plant That Never Produced
Meanwhile, the plant remains non-operational as salaries and allowances continue.
Specifically, the budget shows how officials plan to spend the funds.
First, salaries and wages alone take ₦4.79 billion.
Next, allowances and statutory contributions account for ₦1.25 billion.
In detail, pension payments absorb ₦479.4 million, while NHIS takes ₦239.7 million.
In addition, employees’ compensation insurance claims ₦59.8 million.
Altogether, regular allowances reach ₦468.9 million.
Salaries Over Steel
However, the budget shows little commitment to revival.
Overall, recurrent spending totals ₦6.28 billion, while capital spending reaches only ₦410.8 million.
As a result, assets and rehabilitation receive less than seven per cent of total funding.
Even then, officials spread the capital budget thinly.
For example, computers and security equipment receive just ₦56.4 million.
Similarly, construction and facilities provision take ₦129.2 million.
Meanwhile, repairs and rehabilitation absorb ₦225.2 million, mainly for electricity and offices.
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Importantly, the 2026 figures follow an established pattern.
Personnel costs rose from ₦4.29 billion in 2024 to ₦6.21 billion in 2025.
Despite this increase, production remained at zero.
Now, the proposed ₦6.04 billion for 2026 reflects only a slight reduction.
Ajaokuta Plan Without Production
Meanwhile, revenue prospects remain bleak.
The budget projects zero independent revenue and no grants for Ajaokuta in 2026.
Consequently, the company relies entirely on federal subventions.
Despite this dependence, Ajaokuta features in constituency-style capital projects.
These projects include street lighting, water schemes and small community interventions.
However, none directly support steel production or industrial capacity.
Separately, the Ministry of Steel Development included revival-related provisions.
Specifically, it allocated ₦150.99 million to revitalise Ajaokuta and NIOMCO.
In addition, it set aside ₦1.06 billion for project preparation and investment mobilisation.
This funding covers feasibility studies, environmental assessments and financial modelling.
Nevertheless, these provisions fall below 2025 levels.
Project preparation spending has therefore dropped by about 56% year on year.
Originally, planners conceived Ajaokuta in 1979 to drive Nigeria’s industrialisation.
Today, the project symbolises stalled ambition.
Currently, the company employs about 3,000 workers.
It also claims full operations could create thousands of direct and indirect jobs.
Ultimately, the 2026 budget delivers a clear message.
Ajaokuta remains idle, salaries dominate spending, and steel production stays out of reach.
