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Ajaokuta Steel: Nigeria’s Sleeping Giant or Monument to Failure?

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Basah Mohammed Ajaokuta Steel

By Mohammed Basah

Few things tell Nigeria’s story of wasted potential like the Ajaokuta Steel Complex. Conceived in the 1970s as the industrial crown jewel that would power Nigeria into a new age of self-sufficiency, it has instead become a colossal graveyard of ambition. Decades later, with billions sunk into it and countless promises made, the plant has never produced a single sheet of steel at commercial scale. And yet, every election cycle, leaders dust off Ajaokuta as a political talking point — a dream deferred but never honestly re-examined.

The question Nigerians must ask now is simple: are we prepared to tell ourselves the truth about Ajaokuta, or will we keep throwing good money after bad in the name of nostalgia?

The Promise That Never Was

At inception, Ajaokuta was meant to be Africa’s largest steel mill. The Soviet Union provided technical support, Nigeria provided ambition, and successive leaders touted it as the bedrock of industrialisation. By the early 1990s, the sprawling plant had blast furnaces, rolling mills, and auxiliary facilities.

On paper, the potential was immense: an integrated plant that would supply everything from billets for construction to flat sheets for automobiles. In reality, Ajaokuta never took off. It lacked three critical ingredients: a reliable ore feedstock from Itakpe, a functioning rail link to Warri port, and the operational discipline needed to run a blast furnace continuously. Without those, the plant was a car without an engine — impressive from the outside, utterly useless inside.

Economist Kalu Aja, who has visited the site, put it starkly: “No Nigerian can visit Ajaokuta, see investments of more than $8bn rotting in the African sun, and not cry.” He is right — it is less a factory than a mausoleum of missed chances.

How Leadership Failed

Every administration since Shehu Shagari has promised to revive Ajaokuta. Few have been honest about its real condition.

  • Olusegun Obasanjo, though not an economist, had a streak of pragmatism. He attempted to concession the plant, recognising that the Nigerian state alone lacked the competence and discipline to make it work.
  • Umaru Yar’Adua, despite his idealism, dropped the ball by undoing some of those decisions, appointing weak hands to critical economic sectors. His decision to revoke the sale of the plant by the Obasanjo administration, reversed reforms that could have set Nigeria on a better course.
  • Goodluck Jonathan largely ignored Ajaokuta, focusing instead on power-sector privatisation.
  • Muhammadu Buhari — the “Mr Integrity” showman — went the opposite way, spending almost $500 million of scarce funds to buy back concessions in a bid to “reclaim” the asset. Money we did not have was spent on something we did not need.

The result is a vicious cycle: every leader frames Ajaokuta as a national asset that must be revived “at all costs,” but none has ever defined those costs, or justified them against measurable returns.

Robert Kiyosaki once said an asset is anything that puts money in your pocket. By that definition, Ajaokuta is not an asset. It has never once put money in Nigeria’s pocket. Instead, it has drained resources that could have gone into building power plants, roads, or smaller, modern steel mills that actually work.

The Debate Today: Revive or Move On?

There are two schools of thought about Ajaokuta.

The first insists it must be revived because steel is strategic. Advocates argue that local steel production would create jobs, reduce import dependence, and catalyse downstream industries. They see Ajaokuta as a national pride project — too big to abandon.

The second camp, increasingly loud and pragmatic, argues that Ajaokuta is obsolete. Global steel technology has advanced. Mini-mills and direct-reduction plants are now cheaper and more flexible. The original Soviet design is outdated. Even Aliko Dangote, hardly a man afraid of big industrial projects, has said bluntly: “Ajaokuta will not work.”

Who is right? The truth lies closer to the second camp. Ajaokuta’s design reflects a 1970s Soviet model, not the leaner, modular systems that dominate the industry today. Reviving it fully would cost not billions, but tens of billions, plus decades of guaranteed political discipline — something Nigeria has never demonstrated.

Lessons from Abroad

Other countries started like Nigeria but took different paths.

  • India, which also had Soviet-assisted steel plants, managed to turn them around by combining state-owned companies with aggressive private firms like Tata Steel. Crucially, India didn’t romanticise its white elephants. It modernised some, shut others, and let the private sector drive growth.
  • South Korea, in the 1970s, built POSCO with ruthless focus. The government ensured reliable ore supply, captive power, and export markets. POSCO became one of the most efficient steelmakers in the world.
  • China threw its weight behind integrated steel hubs but paired them with strict accountability and rapid adaptation to new technology.

The difference? Discipline. Competence. And a willingness to cut losses where necessary. Nigeria, by contrast, has refused to accept that Ajaokuta is not destiny — it is just one project, and not even a successful one.

The Hard Truth: Three Non-Negotiables

Kalu Aja has highlighted three basic conditions without which Ajaokuta cannot work:

  1. A functioning Itakpe iron ore supply chain (via NIOMCO).
  2. The Itakpe–Ajaokuta–Warri rail line to move inputs and outputs efficiently.
  3. Continuous operation of the blast furnace, which requires uninterrupted power and feedstock.

Until all three are solved, turning on Ajaokuta’s furnace would be worse than leaving it idle. It would simply burn cash at industrial scale.

What Should Be Done?

Nigeria faces a choice: keep funding a relic, or redirect resources toward productive alternatives. Here’s what makes sense:

  1. Stop the politics. Ajaokuta should not be a campaign slogan. Commission an independent, transparent audit of its current condition and make the report public.
  2. Adopt a staged approach. Instead of chasing full integrated steel, start with operationalising the light rolling mill and validating local demand for simple products like rebar.
  3. Bring in credible partners. Any concession must include strict milestones, penalties for failure, and escrowed payments. No more sweetheart deals.
  4. Let private players lead new investment. Encourage greenfield steel plants using modern technology. Sometimes it is cheaper to build afresh than to revive a dinosaur.
  5. Develop downstream markets. Steel alone is meaningless without coordinated demand from construction, rail, and manufacturing. Government procurement policy should guarantee offtake for domestic producers.

Why This Matters

Nigeria spends over $4 billion annually importing steel and allied products. That is money leaving the economy — money that could create jobs at home. But let us be clear: Ajaokuta, in its current state, cannot close that gap. Pretending it can only wastes time.

The bigger tragedy is not just the money wasted, but the hope betrayed. Every Nigerian generation has been told Ajaokuta will deliver a better tomorrow. For 40 years, that tomorrow has not come. The danger is that we keep telling the same lie, rather than facing the truth: industrialisation will not come from nostalgia. It will come from hard choices, pragmatic investments, and ruthless accountability.

Closing Thoughts

Ajaokuta is not just an industrial project; it is a mirror held up to Nigeria. It shows how we dream big but execute poorly. It shows how politics trumps economics. It shows how we confuse national pride with practical value.

It is time to stop. Time to ask Kiyosaki’s simple question: does this put money in our pocket? If the answer is “no” — as it has been for 40 years — then we must stop pouring money into a bottomless pit.

Olusegun Obasanjo was no professor of economics, but he understood pragmatism. Yar’Adua’s poor choices, Buhari’s expensive buybacks — all are reminders of what happens when sentiment drives policy.

Nigeria’s future does not lie in reviving a dead horse. It lies in building systems that work, assets that produce, and industries that actually deliver value. Ajaokuta can either be reborn with honesty and realism — or finally laid to rest as a costly lesson.

The choice is ours.

Mohammed Basah is a writer, strategist, and founder of Ideas Foundry Limited. Through Entrepreneurship Tonic, a media, education and community platform, he works to close the knowledge, skill and networking gap facing emerging African entrepreneurs

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The Role of TV in Preserving African Stories and Identity

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Preserving African Stories

Scroll through social media today, and you will notice something interesting: everyone is either reacting to a series, quoting a movie line, or debating a character as though they personally know them. Beneath the memes and binge-watch culture, however, lies something deeper. Television remains one of the most powerful tools shaping how Africans see themselves, remember their history, and tell their own stories. In a continent as diverse and expressive as Africa, that matters more than ever.

TV as a Cultural Archive, Not Just Entertainment

Long before streaming algorithms began shaping our viewing habits, television was already preserving African identity. From Nollywood dramas that capture the rhythm of everyday Lagos life to documentaries exploring Maasai traditions and Ghanaian folklore, TV has served as a living archive of the continent’s stories.

It preserves more than entertainment; it preserves language, culture, humour, values, and shared experiences. Unlike fleeting social media content, television allows stories to unfold with depth, exploring the realities of family, tradition, ambition, and modern African life without reducing them to stereotypes. That is the power of TV: preserving not just stories, but perspective.

Why Representation on TV Still Matters

There is a subtle but important truth: if people do not see themselves on screen, they may begin to believe their stories are not worth telling. This is why African TV content is more than entertainment; it is affirmation.

Seeing a character who speaks like you, struggles like you, or celebrates like your community does something powerful. It validates identity and challenges outdated narratives that have historically defined Africa through external lenses.

This is where MultiChoice Group, through platforms such as DStv and GOtv, plays an important role. They do not simply broadcast content; they help distribute cultural memory at scale.

GOtv, DStv, and the Everyday African Viewer

Think about a typical evening in many African homes: the TV is on in the background, someone is laughing at a comedy show, another person is watching a local series, and someone else is catching up on the news. That shared viewing experience remains very real.

Through platforms such as DStv and GOtv, African households are exposed to a blend of local storytelling and global content. More importantly, they have helped amplify African-produced content by bringing Nollywood films, African reality shows, talk shows, and documentaries into mainstream rotation.

It is not just about access. It is about visibility.

A young filmmaker in Lagos today is more likely to believe their story matters because they have seen similar stories broadcast widely. A child in Accra grows up hearing familiar accents and seeing environments that look like their own on screen, not as exceptions, but as the norm.

TV Is Also Shaping Modern African Identity

African identity is not static; it is evolving. Television reflects that evolution in real time.

Today, audiences see:

  • Young Africans balancing tradition and modern dating culture

  • Stories tackling mental health in African households

  • Fashion and music influences spreading through TV series

  • Political satire shaping public conversation

Conversations that were once confined to homes are now being explored on screen, giving audiences the language to discuss issues that were previously unspoken.

In many ways, television is doing what oral tradition has always done: passing stories, values, humour, warnings, and history from one generation to the next. The difference is that today’s griots are writers, directors, and broadcasters.

The Future: From Watching to Owning Our Narratives

The next stage of African storytelling is not just about being seen; it is about ownership.

As more African creators produce content and platforms continue to invest in regional storytelling, television becomes more than a mirror. It becomes a tool for shaping how Africa is represented to itself and to the world.

While streaming continues to grow, television, particularly accessible platforms such as GOtv, remains one of the most effective ways to reach everyday audiences across different income levels and regions. After all, storytelling only matters if people can access it.

African stories are not new. They have always existed in families, on streets, in markets, in history books, and through oral traditions. What television has done, and continues to do, is give those stories a stage wide enough for millions to experience them at once.

The next time you watch a local series or documentary on DStv or GOtv, remember that you are not just being entertained. You are participating in the preservation of African identity itself.

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The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation

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Kehinde Ogundare 2025

By Kehinde Ogundare

Ask a tech entrepreneur in San Francisco what AI means for their business, and they are likely to talk about competitive advantage, product differentiation, and scale. Ask a small business owner in Kano or Onitsha the same question, and the conversation shifts entirely.

For many Nigerian SMEs, the priority is keeping the lights on, managing costs, and finding sustainable ways to grow in a challenging economic environment. This difference in perspective explains why the global AI conversation, often shaped by assumptions about stable infrastructure, deep capital, and abundant technical talent, frequently fails to address the realities facing Nigerian SMEs.

This matters because Nigerian SMEs are not a peripheral concern. In 2024 alone, MSMEs contributed 46.32% to Nigeria’s GDP, accounting for 96.9% of businesses and 87.9% of employment. These businesses are the backbone of the Nigerian economy, and if AI is going to mean anything for Nigeria’s development, it has to work for them in the daily conditions they actually operate in.

However, research drawing on empirical data from 144 Nigerian SMEs found that inadequate infrastructure, low digital literacy, skills shortages, and regulatory gaps are collectively preventing them from meaningfully engaging with AI. Awareness of AI is high and growing. What is missing is a clear and honest conversation about what adoption actually requires in this specific context. The barriers are real, but none of them are insurmountable. The question is whether the tools, pricing models, and support structures being offered to Nigerian SMEs are designed with those barriers in mind, or whether they have been built for another market entirely.

Subscription models making AI affordable for small businesses

When most small business owners hear “AI,” they imagine expensive software, specialist consultants, and a hefty upfront bill.

That assumption is not entirely wrong, but it describes a particular way of buying technology, not AI itself. The shift that makes AI genuinely accessible at the SME level is the move away from large, one-time capital purchases towards tools that charge a predictable monthly subscription. Businesses can pay for what they use, scale back when necessary, and avoid the debt that a major technology investment can create.

The deeper opportunity here is consolidation. Many SMEs are already spending money across multiple disconnected tools—one for invoicing, another for customer records, another for stock tracking—none of which talk to each other. An integrated platform that handles several of these functions together, with AI built in, can actually cost less than the sum of those separate subscriptions while giving business owners a clearer picture of their operations.

With margins already under pressure, any technology a business adopts needs to visibly show an increase in productivity or bottom line. Subscription-based, integrated platforms, priced transparently and honestly, are the model that best fits this reality.

Infrastructure challenges demand a mobile-first approach

No conversation about technology in Nigeria is complete without confronting the infrastructure problem, and AI is no exception. Nigeria continues to face major infrastructure barriers, including limited broadband access, unreliable power supply, and high data costs, all of which constrain deeper AI adoption. These are structural features of the operating environment that any sensible technology strategy must account for today.

The electricity situation alone is significant. The World Bank estimates that the lack of stable electricity costs Nigeria’s economy approximately $26.2 billion annually, equivalent to about 2% of GDP, forcing many businesses to run on expensive diesel generators. That cost ripples outward.

In practical terms, AI tools built for Nigeria cannot assume a stable broadband connection or a computer that is always powered on. The tools that will actually get used are the ones that work on a smartphone, consume minimal data, and can function offline when connectivity drops, syncing back up when it returns. The mobile phone is already how many Nigerian SME owners run their businesses. AI that meets them there, rather than demanding infrastructure they do not have, is AI that has a genuine future in this market.

The direction is clear: build capability from within, using tools that make that possible. Recent AI performance research reveals that 64% of African workers are already actively using AI at work, signalling massive grassroots readiness and driving forward-thinking organisations across Nigeria, Kenya, and South Africa to aggressively prioritise internal upskilling frameworks to bridge the talent gap.

As the policy groundwork is being laid, the commercial ecosystem is beginning to respond. What remains is a clear-eyed acceptance that AI tools built for this market need to look different from those built for markets with different realities. Low cost, low bandwidth, and usability for non-technical people are not modest ambitions; they are the actual requirements. Build for those realities, and AI has a real future in Nigeria’s SME economy.

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When Leaders THRIVE: Yetunde B. Oni’s Candid Counsel to Lateef Jakande Leadership Academy

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When Leaders THRIVE Yetunde B. Oni

Union Bank’s Managing Director and Chief Executive Officer sat with 30 of Nigeria’s most promising young leaders for a frank conversation on character, relationships and the discipline of growth.

Out of 25,000 applicants, only 30 earned a place. That single figure tells you how rare the room was when Yetunde B. Oni, Managing Director and Chief Executive Officer of Union Bank of Nigeria, recently sat down with a cohort of the Lateef Jakande Leadership Academy.

The Academy, a Lagos State Government initiative established in honour of Alhaji Lateef Kayode Jakande, the state’s first civilian governor, exists to raise a generation of ethical and capable young leaders. Its fellows are drawn from across professions, sectors and ethnicities, and shaped through a fellowship facilitated by the Africa Leadership Initiative, West Africa (ALI WA), whose work on values and principled leadership has become a quiet engine behind some of the country’s most thoughtful emerging talent.

It was into this gathering that Mrs Oni brought not a corporate address, but a conversation. Honest, personal and at times disarming, she spoke about the philosophies that have carried her through a career spanning more than three decades, the setbacks she has had to surmount, and the values that opened doors she never expected to walk through.

She gave them a framework to hold on to. She called it THRIVE.

The six principles

T — Take ownership of your relationships. Leadership, she argued, begins with the deliberate stewardship of the people around you. Relationships are not incidental to a career. They are infrastructure.

H — Honour God. She spoke openly about faith as a steadying force, an anchor that keeps ambition tethered to something larger than the self.

R — Recharge and refresh. Mental and physical health, she insisted, are not luxuries to be deferred until the work is done. Leaders who neglect their well-being eventually have less to give.

I — Invest in your growth. Continuous and heavy investment in personal development is, in her telling, the price of staying relevant. The learning never ends.

V — Value your work. She pressed the fellows on identity and brand. What do you stand for? Do you create value? Who, in truth, are you? The questions were not rhetorical.

E — Embrace setbacks. Failure, she said, is not the opposite of progress but a part of it. The leaders who endure are the ones who learn to metabolise disappointment rather than be defeated by it.

The people behind the leader

If one theme threaded the entire conversation, it was relationships. Mrs Oni was candid that she did not arrive at the top of Nigerian banking alone. She credited the steady support of family, her parents and her husband, alongside the mentors, friends, coaches and sponsors who shaped her at different stages.

She drew a sharp and useful distinction between a mentor and a coach, two roles often conflated and rarely understood, and she traced much of her progress back to a foundation of Nigerian cultural values: hard work, honesty and integrity, courtesy and respect. These, she told the fellows, are not relics. They are the very qualities that have earned her trust and opened doors throughout her journey.

“You need people,” was the message, delivered without sentiment. Relationships, she explained, must be managed and nurtured with the same seriousness one brings to any other discipline. Time must be managed with equal care.

On believing, and risking

Perhaps the most resonant moment came when Mrs Oni spoke about self-belief. She admitted that becoming the MD/CEO of Standard Chartered Bank, Sierra Leone, did not cross her mind – not because she was unqualified, but because she didn’t think she would get it. Encouraged by her husband, she applied anyway, and she got it!

That appointment would later see her make history as the first woman to lead a Standard Chartered Bank operation in her market.

The Union Bank of Nigeria appointment told a similar story. She had not even known the position existed after the CBN’s intervention. It came to her through relationships; through the quiet networks of people who knew her work and recommended her name while she was unaware in faraway Sierra Leone.

The lesson she left with the fellows was unambiguous. Believe in yourself. Take the risk. Put in for the thing you are not yet certain you deserve, because the opportunity you are waiting for may be one you cannot see, reaching you through someone you have not yet met.

Why this matters

Engagements of this kind are easy to underestimate. They produce no headlines about balance sheets and no immediate line on a financial statement. Yet they speak to something Union Bank has long understood: that institutions endure when they invest in people, and that leadership is built one honest conversation at a time.

Credit is due to the Africa Leadership Initiative, West Africa, whose facilitation of the Lateef Jakande Leadership Academy continues to shape young Nigerians of real promise, and to the Academy itself for the rigour of a process that turned 25,000 hopefuls into 30 fellows ready to lead.

For Yetunde B. Oni, the afternoon was less about what she had achieved than about what she was willing to give: her time, her story and her counsel, offered freely to those coming after her. It is, in the end, what the best leaders do. They light the path for the next generation, and they THRIVE.

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