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Ajaokuta Steel: Mittal, Indian Businessman Gets $500m Bailout in Nigeria
A company owned by Pramod Mittal, an Indian businessman who was the chairman of Ispat Industries Limited (now JSW Ispat Steel) is reportedly getting almost $500 million after the federal government of Nigeria agreed to pay his company the sum to settle a contract dispute over a deal that a previous administration said was tarnished by fraud.
Source: Bloomberg
Bloomberg reported that Mittal’s firm won a settlement tied to a Soviet-era steel plant that has sucked up more than $7 billion in Nigerian public investment without producing any metal.
Mittal, whose career in the steel industry has been less glittering than Lakshmi Mittal, his better-known sibling — the tycoon behind the €20 billion ($21.2 billion) ArcelorMittal SA conglomerate —, has a string of abandoned factories and a trail of unpaid debts to his name.
Five years ago, his Isle of Man-registered Global Steel Holdings Ltd., or GSH, was put into liquidation over $167 million owed to Moorgate Industries Ltd., a company spun off from one of the world’s biggest steel traders.
As a UK court weighed Moorgate’s request to declare Pramod personally bankrupt three years ago, the London-based Indian national held out the prospect of a payout from the Nigerian state to clear his debt.
The judge was unconvinced at the time, but the settlement subsequently reached with Nigeria last year now looks like the 67-year-old’s best route out of insolvency.
Still, while payments from the Nigerian government have reached GSH’s liquidators, as of Oct. 4, Moorgate had yet to see any of those funds despite having asked for them, court documents show.
With Pramod’s bankruptcy winding its way through English court rooms, a new Nigerian president has taken office, and last month his steel minister said one of the administration’s top priorities is to finally fire up the furnaces of the massive plant at the heart of the younger Mittal’s $496 million compensation.
The government has justified the agreement with a former unit of Pramod’s GSH, which was announced in September 2022, saying it frees the state to pursue its ambitions for the sprawling 24,000-hectare (92 square mile) site.
The settlement — representing about 1.5% of Nigeria’s foreign reserves — is just the latest twist in the saga of the vast Soviet-built factory complex begun 44 years ago.
The project has sucked up more than $7 billion in public investment and has yet to produce any metal.
The story of the Ajaokuta steel mill on the banks of the Niger River 190 kilometers south of the capital, Abuja, is often cited as emblematic of the corruption, poor governance and incompetence that bedevils the West African nation.
The country’s most notorious white elephant still sparks passionate debate over whether it should be written off or revived.
“Ajaokuta has been a black hole that has gobbled up billions of dollars, enriching multiple generations of politicians and foreign enablers,” said Matthew Page, a former Nigeria expert for US intelligence agencies and now an associate fellow at London-based Chatham House.
“This last failed reboot — and the giant price tag that came with it — is a preview of the next failed re-concessioning attempt. At this point, Ajaokuta’s dilapidated machinery is capable of doing only one thing: making public funds disappear.”
Bloomberg claimed that neither Pramod’s representatives nor the spokespeople for the newly elected President Bola Tinubu and Steel Minister Shuaibu Audu responded to requests for comment.
Abubakar Malami, Nigeria’s attorney general from 2015 to earlier this year, on whose watch the settlement was reached, said last year that the administration of former President Muhammadu Buhari “rescued the steel industry from interminable and complex disputes as well as saving the taxpayer from humongous damages.”
Pramod’s Involvement
Pramod entered into the Ajaokuta picture in 2004, when then President Olusegun Obasanjo awarded GSH a series of contracts, including an arrangement first to manage and later to buy the steel mill.
Shortly after GSH took over the plant, Solgas Energy Ltd., a small US company, sued it in Texas. Solgas claimed that GSH discussed becoming Solgas’ subcontractor on Ajaokuta before breaching a confidentiality accord and bribing Nigerian officials, including one of Obasanjo’s sons, to “steal the concession.”
While the case was thrown out on jurisdictional grounds, in December 2008 a separate arbitration tribunal ordered Nigeria to pay Solgas $15.2 million in damages for the wrongful termination of the contract — while noting the US firm hadn’t provided evidence to support the corruption allegations.
By then, Umaru Yar’Adua had taken over as Nigeria’s president, and he canceled GSH’s contracts after a panel that his steel development minister set up said the concessions were rife with irregularities. GSH’s claim it had invested $200 million was “a ruse,” the inspectors said.
Rather, the company had used its Nigerian assets to borrow more than $192 million from local banks — funds they “strongly” suspected had been dispatched abroad, they said.
The panel’s full report — never made public but seen by Bloomberg — said rescuing Ajaokuta was beyond the “financial, technical and experiential capabilities” of GSH, which instead had been “systematically cannibalizing, vandalizing and moving valuable equipment” out of the factory.
GSH and its Nigerian unit initiated arbitration proceedings against the government and later entered mediation, which produced last year’s settlement.
Pramod had signed two earlier agreements with the Nigerian government – in 2014 and 2016 – that would have seen his firm retain the right to manage an idled state-owned iron ore mining company but receive no payout.
“I threatened them with criminal proceedings for tax evasion, in addition to other criminal infractions that they had clearly committed,” Mohammed Adoke, a former attorney general who had reached the first of these accords, wrote in his memoir titled “Burden of Service.” “To amicably resolve the issue, I insisted that Global Steel should relinquish (Ajaokuta) for free without any form of compensation.”
Adoke’s successor, Malami, who was the attorney general when the half-a-billion-dollar settlement was struck, modified the terms of the deal to take back the mining firm and award a payment. Malami didn’t respond to a request for comment.
Moorgate’s Case
Even before finalizing the Ajaokuta windfall, Pramod had suggested using the money to pay down the Moorgate debt. In June 2020, as Moorgate sought his bankruptcy, he told Judge Catherine Burton that GSH’s liquidators had failed to account for the “very real prospects of a payment” from Nigeria. He said his Abuja-registered subsidiary would settle the obligation to Moorgate “out of whatever money it receives from the mediation,” according to the decision issued by Burton, who — unpersuaded — ruled in favor of the creditor.
Pramod also tried another way to skirt bankruptcy — using an individual voluntary arrangement, or IVA. He proposed repaying less than £5 million out of £2.5 billion ($3.1 billion) — or 0.2% of what a handful of companies and individuals said they were owed by the businessman.
Moorgate countered that “friendly creditors” who approved this meager offer were either associated with Pramod or relying on loan agreements that were “not true or contemporaneous documents.” A UK judge revoked the IVA last November, expressing “serious doubts” about the authenticity of the paperwork. In the IVA, Pramod said he was worth £117,000, claiming he didn’t control GSH. The family’s London mansion is held through an offshore company whose directors were senior managers at GSH.
Contrary to Pramod’s argument, the court determined he controlled the British Virgin Islands-registered company that owned GSH through his influence over a family trust, with an Isle of Man judge similarly describing him as that firm’s “driving force.”
Pramod made other apparent attempts to distance himself from the group and its subsidiaries. Since April 2021, GSH’s Nigerian unit — the settlement’s beneficiary — has been owned by a Mauritian entity named Luminous Star Ltd., classified as defunct for a decade and with a director who was formerly a GSH employee. While Pramod ceased to be a director of the Nigerian firm in late 2020, his son sits on the board.
In January, Nigeria’s then Information Minister Lai Mohammed said the government had paid $446 million to GSH’s local unit in multiple instalments under the settlement. The law firm hired by the Nigerian subsidiary for the mediation made six transfers from these funds to GSH’s account, totaling £219 million ($272 million) between October 2022 and February 2023, according to reports filed by the company’s liquidators. The law firm, King & Spalding LLP, declined to comment on the rest of the money.
In December and again in March, Moorgate asked to be paid out of funds recovered by GSH’s liquidators, according to a court decision issued last month in the Isle of Man. The liquidators, who estimate that only £40 million is available for creditors once GSH’s potential tax liability and additional costs are taken into consideration, are yet to comply with the request, the judge said on Oct. 4, ruling that Moorgate is entitled to receive part-satisfaction of the debt. Moorgate and GSH’s liquidators declined to comment.
Emulating Lakshmi
Like his brother Lakshmi, who built the world’s second-largest steel producer after splitting from the family business in the mid-1990s and embarking on a legendary deal-making spree, Pramod’s efforts also hinged on international acquisitions. As Lakshmi, the UK’s sixth-richest person, entered the wealth stratosphere, his brother sought to emulate him.
In 2004, Lakshmi’s daughter got married in a lavish ceremony at Versailles, France. Nine years later, the younger Mittal spent £50 million on his daughter’s wedding in Barcelona, according to Moneylife, an Indian media outlet, and Spanish news site Vanitatis. Pramod’s spokespeople didn’t comment on the figure. Just this year, Pramod’s son got married to his long-term partner in a “multi-million pound ceremony” at a five-star UK hotel, the Daily Mail reported.
Pramod’s steel ambitions took him not only to Nigeria, but also to Bosnia, Bulgaria, Libya, Zimbabwe and the Philippines where his companies ran up nearly a billion dollars in debts. During the mid-2000s expansion, GSH agreed to take a loan of up to $35 million from an offshore company owned by his brother Lakshmi, board meeting minutes show. Neither Lakshmi nor the group he heads “have any business connection to the investments” of Pramod, a spokesperson for ArcelorMittal said by email.
In the Philippines, GSH bought a shuttered steel plant in 2004. Within five years, activity at the facility stopped amid a legal battle, with lenders claiming Pramod’s firm had defaulted and the company accusing the banks and liquidator of reneging on an obligation to clear tax arrears. In Bulgaria, where GSH failed to turn around a communist-era steelmaker, a Sofia court put the company owning the mill into bankruptcy in 2008 after it defaulted on a Є325 million bond.
Authorities in Bosnia-Herzegovina arrested Pramod in July 2019 and charged him in January this year with “heading an organized crime group.” Prosecutors alleged that GSH “illegally appropriated” about $11.5 million from a manufacturer of iron-ore smelting coke that the firm took control of in 2003. In a statement following his detention, GSH said the “complaints are categorically false,” according to Mumbai-based news outlet Global Prime News. Pramod was released on bail shortly after being questioned and has not returned to Bosnia. He and his family have initiated arbitration proceedings against the Bosnian state.
Meanwhile, in Nigeria, the attachment of the country’s leaders to the Ajaokuta plant shows no sign of abating, even though critics including the World Bank have called the facility obsolete. President Tinubu pledged during his election campaign to get the steel mill up and running. His predecessor’s government, which left office in May, congratulated itself not only for liberating Ajaokuta from Pramod’s legal claim but also securing it for a settlement significantly smaller than the $5.3 billion that GSH had apparently demanded.
Just last month, touting the potential of the complex to one day create half a million jobs, Vice President Kashim Shettima said the “Ajaokuta plant can be a game changer for the Nigerian nation.”
Source: Bloomberg L.P except headlines and add ons
Tony Elumelu, Nigerian businessman and philanthropist, has warned about the growing dangers of artificial intelligence misuse after an AI-generated video falsely showed him promoting a forex and cryptocurrency trading platform.
Tony Elumelu,
The founder of Tony Elumelu Foundation revealed this in a post on his X account on Monday, explaining that the video appeared highly convincing but was entirely fabricated.
In the post, he also tagged Elon Musk, X owner, and Nigeria’s Federal Ministry of Communications, Innovation and Digital Economy while calling for stronger safeguards against the misuse of artificial intelligence.
“A few days ago, my team flagged an AI-generated video of me endorsing a forex and crypto platform.
“It looked and sounded remarkably real, but it was completely fake. This incident highlights a growing and serious threat to digital trust,” he wrote.
He stressed that he has no affiliation with any cryptocurrency or foreign exchange trading platforms.
“For the avoidance of doubt, I am not associated with any crypto or forex trading platforms.
“My commitment to inclusive prosperity has always been through long-term investments, building sustainable businesses, and empowering entrepreneurs,” he said.
While acknowledging the transformative potential of artificial intelligence, Elumelu urged African youths to embrace the technology responsibly and use it to develop scalable solutions.
“I strongly believe in the potential of AI. It is a defining technology of our time, and African youth must be at the forefront of adopting it to build scalable solutions. We cannot afford to be left behind in the global tech race,” he added.
The business leader, however, warned that rapid technological advancement also presents risks if not properly regulated.
“But the flip side of rapid innovation is the risk of abuse. The ease with which identities can now be cloned to deceive the public is alarming.
“Policymakers and regulators must act now to establish safeguards and hold those using it to scam innocent people accountable,” he said.
Elumelu also urged the public to remain vigilant and protect themselves from digital fraud.
“We must create a safe digital environment where true innovation can thrive without being overshadowed by fraud. Protect your hard-earned money, stay alert, and let us continue to build the Africa we deserve,” he said.
By Solomon Yaji
Kashifu Inuwa, the Director-General of the National Information Technology Development Agency (NITDA), has emphasised the critical role teachers play in driving Nigeria’s digital transformation, noting that classrooms will be central to shaping the country’s technology-driven future.
Inuwa made the remark during a stakeholders’ dialogue organised by the Development of Educational Action Network Initiative (DEAN) in Abuja.
Speaking on the theme “Nigeria’s Current Digital Landscape: Our Reality and Its Practical Connection to Education,” the NITDA DG, who was represented by the agency’s Director of Stakeholder Management and Partnerships, Dr. Aristotle Onumo, said the rapid expansion of the digital economy is reshaping the education sector and redefining the role of teachers in modern learning environments.
He explained that while digital technologies have created unprecedented access to information and opportunities for students, they also present challenges that require guidance and responsible use.
According to him, teachers must go beyond the traditional role of knowledge transmission to become mentors who help students navigate the digital world safely and responsibly.
“Teachers are no longer just instructors; they are now guides who help students identify credible information, avoid harmful online content, and develop responsible digital behaviour,” he said.
Inuwa added that educators must cultivate critical thinking among students while equipping them with the skills needed to thrive in an increasingly technology-driven society.
He reaffirmed NITDA’s commitment to advancing digital literacy nationwide through initiatives such as the Digital Literacy for All programme and partnerships with educational institutions aimed at strengthening teachers’ digital capacity.
The NITDA boss stressed that empowering teachers with digital skills is vital to preparing Nigerian students for the future workforce and ensuring the country remains competitive in the global digital economy.
Nigeria is currently pursuing an ambitious digital literacy agenda, targeting 70 per cent digital literacy by 2027 as part of broader efforts to build a knowledge-driven economy powered by innovation and technology.
Earlier in his remarks, the Executive Director of DEAN Initiative, Semiye Michael, said the workshop was designed to re-engineer teachers’ capacity in line with the realities of the digital economy.
“We need to strengthen teachers’ competence and provide them with access to the necessary digital infrastructure,” Michael said, adding that the engagement would help shape policies that support technology-driven learning in Nigerian schools.
He described the workshop as an “awesome experience,” noting that ideas generated during the session would be consolidated into a policy guide for the ministry and other relevant agencies.
Michael further noted that strengthening teachers’ digital capacity would be vital to enhancing Nigeria’s competitiveness in the global knowledge economy.
The event attracted key stakeholders from the Federal Ministry of Education, Nigerian Communications Satellite Limited (NIGCOMSAT), as well as private sector experts.
Nigerian Institution of Metallurgical, Mining and Materials Engineers (NIMMME or 3M), a vital division of the Nigerian Society of Engineers (NSE), has inaugurated Engr. Michael Ifeanyi Orekyeh, MNSE, as its 13th National Chairman in a colourful ceremony held on Wednesday, March 11, 2026, in Abuja.
Center …Igwe Aguleri Dr Michael Idigo (Ezeudo) Royal Father of the Day and Deputy President of NSE Engr Valerie Agberagba (Representing the President of NSE Engr Ali Rabiu MFR) to his left.
NSE President, Engr. Ali Alimasuya Rabiu, FNSE, MFR, who delivered the opening remarks through his Deputy, Engr. Valerie Ifeuko Agberagba, FNSE, described the event as a major milestone for engineers specialising in metals, mining and materials science – professionals whose expertise is crucial for constructing durable roads, factories, bridges and other infrastructure projects essential to Nigeria’s economic growth and industrialisation.
Engr. Rabiu warmly congratulated Engr. Orekyeh, a Senior Mechanical Engineer at the Federal Ministry of Works and Infrastructure, alongside his newly elected executive committee, for securing the confidence of their peers through a democratic election process.
He emphasised that the inauguration transcended a mere change of guard, positioning it as a renewed commitment to repositioning the 3M Institution for greater impact in addressing Nigeria’s developmental challenges.
These engineers are at the forefront of transforming raw natural resources extracted from the earth – such as iron ore, coal, limestone, gold and other solid minerals – into finished products like steel beams, construction aggregates and high-performance materials used in homes, industries and public infrastructure across the country.
The NSE President expressed profound gratitude to the outgoing National Chairman, Prof. Abdulrahman Asipita Salawu, FNSE, for his exemplary service during his tenure, while calling on all members to close ranks and provide unwavering support to the incoming leadership.
Engr Michael Orekyeh National Chairman 3M-NIMMME Delivering his speech after being sworn in
In a detailed charge to the new executives, Engr. Rabiu outlined key focus areas in straightforward terms: aggressive advocacy for policies that boost the metals, mining and materials sectors; development and enforcement of rigorous professional standards; expanded capacity-building programmes for members; upholding ethical leadership and integrity; fostering collaboration with other NSE technical divisions and branches; and proactive engagement with government agencies, private industries and the general public to drive tangible outcomes.
He underscored the urgency of these priorities amid Nigeria’s pressing national issues, including dilapidated road networks, high unemployment rates, inadequate industrial base and environmental degradation, urging engineers to forge stronger partnerships with policymakers, research institutions and the organised private sector.
“The challenges facing our country today demand stronger synergy between engineering professionals, policymakers and industry stakeholders,” Engr. Rabiu stated, reaffirming NSE’s overarching mission to promote engineering excellence that safeguards lives, property and the nation’s natural resources.
A standout feature of the event was the spotlight on a homegrown innovation in road construction tailored to Nigeria’s tropical climate characterised by year-round warmth and heavy torrential rains, in contrast to the frost-resistant designs prevalent in temperate Western countries.
Dubbed Cement-Stabilised Soil Pavement with Integrated Microsurfacing, the technology leverages abundant local soils like laterite as the base material, stabilised with cement and specialised additives in a central mixing plant to achieve uniform strength and superior water resistance.
This approach eliminates the inconsistencies of traditional in-situ mixing methods, delivering roads that are more durable, cost-effective and quicker to build while reducing dependency on imported asphalt.
The inauguration lecture, themed “Diversifying the Nigerian Economy through Metals and Solid Minerals Development,” resonated deeply with participants, highlighting Nigeria’s vast untapped reserves of over 40 commercially viable solid minerals spread across more than 500 locations nationwide. Engr. Rabiu reiterated NSE’s steadfast commitment to supporting federal and state governments with technical expertise, policy recommendations and innovative solutions to responsibly harness these resources for job creation, revenue generation and sustainable development without compromising ecological balance.
Delivering the keynote address, Mr. Vassily Oye Barberopoulos, Managing Director of Nigerian Foundries Group based in Ota, Ogun State, passionately advocated for replicating the successful Local Content policy from the oil and gas sector in the solid minerals industry.
He noted that mining operations demand a wide array of components – from castings and forgings produced in foundries to fabricated parts – yet foreign mining firms predominantly import these, stifling local manufacturing. Mr. Barberopoulos called for robust legislation championed by the National Assembly, Ministry of Solid Minerals Development, Manufacturers Association of Nigeria (MAN) and NIMMME to mandate local sourcing, mirroring the transformative impact of the Nigerian Content Development and Monitoring Board (NCDMB) in petroleum, which unlocked billions in opportunities for indigenous firms.
Guest Lecturer, Engr. Ebosie Ezeoke, Executive Chairman of Anambra State Materials Testing Laboratory (ASMTL), enlightened the audience on an eco-friendly, low-cost cold paving technology for road construction.
L-R Mr Obi Asika Director General National Council on Arts and Culture NCAC….Mr Vassily Oye Barberopoulos MD Nigerian Foundries Group
He described the method as revolutionary, being five times stronger and far more durable than conventional flexible asphalt pavements, while slashing costs and minimising environmental impact through reduced energy use and emissions during production and application – ideal for Nigeria’s constrained budgets and harsh weather conditions.
Engr. Michael Orekyeh, also linked to Anambra State’s ICT Agency initiatives, was formally sworn in by the immediate past Chairman, Prof. Abdulrahman Asipita Salawu, FNSE, represented by Prof. Aje Tokan, a former National Chairman of the institution.
In his acceptance speech, the new helmsman unveiled an ambitious strategic roadmap centred on maximising member participation in specialised committees and Strategic Sector Groups (SSG); deepening partnerships with government ministries, agencies and private sector players; rolling out comprehensive training schemes to upskill 3M professionals; and introducing a modernised certification framework to enhance credibility and employability in the global marketplace.
The well-attended ceremony drew an array of high-profile dignitaries, reflecting the event’s national significance and the broad support for advancing Nigeria’s engineering landscape.
Prominent among them were the Royal Father of the Day, Igwe Dr. Michael C. Idigo (Ezeudo), Igwe Aguleri; Special Guest of Honour, Mr. Obi Asika, Director-General of the National Council for Arts and Culture (NCAC), Abuja; Keynote Speaker Mr. Vassily Oye Barberopoulos; Guest Lecturer Engr. Ebosie Ezeoke; Director-General of the Mining Cadastral Office (MCO), Engr. Obadiah Nkom (represented by Engr. A. Habila); President of the Association of Professional Women Engineers of Nigeria (APWEN), Engr. Chinyere Nnenna Igwegbe; Chairman of the Nigerian Institution of Petroleum Engineers (NIPE), Dr. Yetunde Aladeitan; past 3M National Chairman, Prof. Aje Tokan; and Managing Director of Geocardinal Engineering, Engr. Jacob Adeyemo.
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