Nigeria imports approximately $4 billion worth of steel each year, highlighting the urgent need for domestic production to ease pressure on foreign exchange, Minister of Steel Development, Prince Shuaibu Abubakar-Audu, has revealed.
Speaking during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday, Audu described the agency as crucial to the federal government’s plan to grow Nigeria’s economy to $1 trillion by 2030.
“For Nigeria to achieve large-scale steel production, the exploration arm of the industry must operate at full capacity,” he stated.
The minister praised NSRMEA’s performance, noting that it ranks among the best agencies under the ministry. He also announced plans to collaborate with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware.
“One of President Bola Tinubu’s key priorities is the revival of Ajaokuta Steel Company. As part of a broader military-industrial complex, we plan to integrate military hardware production into the steel sector,” Audu said, adding that a memorandum of understanding (MoU) had been shared with DICON, pending presidential approval.
As part of efforts to reposition the industry, the ministry will host Nigeria’s first steel summit to bring together key stakeholders to develop a comprehensive blueprint for the sector’s growth.
Audu also provided updates on the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives. “Once enacted, this law will create a proper regulatory framework for private and corporate players, ensuring effective governance and development of the steel industry,” he explained.
Highlighting the government’s efforts to attract foreign direct investment (FDI) into the sector, Audu referenced President Tinubu’s visit to New Delhi in September 2023, where a commitment was made to produce five million metric tonnes of steel in Nigeria. Additionally, a Chinese firm, Galaxy, is investing $300 million in a new steel plant in Ogun State.
Despite challenges that have left the steel sector dormant for 45 years, Audu expressed optimism that ongoing reforms would revive the industry.
“Our target is to produce 10 million metric tonnes of steel annually. Once our plans are fully executed over the next five years, we will achieve this goal and significantly reduce Nigeria’s dependence on imported steel,” he assured.
