Nigeria possesses an estimated three billion tonnes of iron ore reserves, but experts say the country’s ambition to revive its steel industry will depend on more than the availability of raw materials.
The National Steel Raw Materials Exploration Agency (NSRMEA) says additional exploration, reliable geological data, increased funding and a functional industrial value chain are essential to transforming the nation’s mineral wealth into steel production, employment opportunities and sustainable economic growth.
The Federal Government has repeatedly emphasized that exporting raw minerals without local processing limits Africa’s economic potential, advocating greater value addition through domestic manufacturing and industrial development.
Speaking on the country’s steel resources, the Director-General of NSRMEA, Kolawole Ogunbiyi, disclosed that Nigeria has about three billion tonnes of iron ore capable of supplying the Ajaokuta Steel Complex in Kogi State once the facility becomes fully operational.
He explained that although Nigeria possesses abundant iron ore, particularly from the Itakpe deposit, more detailed exploration, laboratory analysis and geological assessments are needed to accurately determine the commercial viability and quality of the country’s mineral reserves.
According to Ogunbiyi, iron ore accounts for approximately 95 percent of the raw materials required for steel production, while limestone and coal make up the remaining components.
He noted that the Itakpe iron ore deposit remains the cornerstone of Nigeria’s steel development strategy because of its quality and relatively low impurity levels.
However, he pointed out that the country’s steel value chain remains incomplete because major industrial facilities such as the Ajaokuta Steel Complex have yet to operate at full capacity, limiting demand for locally mined iron ore.
He also highlighted the need to further explore coal deposits in Nasarawa State, stressing that laboratory testing is necessary to determine whether the resource meets the standards required for steel manufacturing and power generation.
The agency further called for increased government funding to expand mineral exploration, upgrade laboratory facilities and acquire modern technologies, including advanced geological survey equipment, to improve the accuracy of mineral assessments.
Meanwhile, the Federal Government has introduced the Early-Stage Mineral Exploration and Research Grant Endowment (EMERGE) programme to strengthen mineral exploration, support research institutions and encourage local processing of strategic minerals.
The initiative is expected to provide funding for exploration, research and mineral processing projects while helping reduce investment risks within Nigeria’s mining sector.
The Minister of Solid Minerals Development, Dele Alake, said the programme is designed to improve exploration activities, promote the processing of critical minerals within Nigeria and strengthen research that supports industrial development.
Industry experts also stressed that investors are more interested in verified mineral reserves than estimated deposits, noting that credible geological data is essential for attracting long-term investment into the mining sector.
They argued that Nigeria’s steel ambitions will only become reality through proven reserves, operational mines, reliable infrastructure, modern processing facilities, sustained investment and a fully integrated industrial value chain.
Experts concluded that while Nigeria’s iron ore deposits present enormous opportunities, transforming those resources into steel production and industrial growth will require continued exploration, accurate data and effective collaboration between government and private investors.
