Nigeria Imports $4bn Steel Annually – Minister
The Minister of Steel Development, Prince Shuaibu Abubakar-Audu, has revealed that Nigeria imports about $4 billion worth of steel annually, stressing the need for import substitution to reduce pressure on foreign exchange.
According to the minister, this is a clear indication that the country needs to focus on import substitution to reduce the pressure on foreign exchange.
Speaking during a visit to the National Steel Raw Materials Exploration Agency in Kaduna on Thursday, Audu described the agency as a cornerstone in the federal government’s plan to grow Nigeria’s economy to $1 trillion by 2030.
“For Nigeria to produce steel in the large quantities we desire, it is very important that the exploration arm of the industry is operating at full capacity,” he said.
The minister commended NSRMEA for its performance, noting that previous assessments ranked it as one of the best-performing agencies under the ministry.
He disclosed plans to partner with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware.
“One of President Bola Tinubu’s key objectives is the rehabilitation of Ajaokuta Steel Company. We are working towards integrating military hardware production into the complex as part of a broader plan to establish a military-industrial complex in Nigeria,” he said.
Audu added that an MoU had already been drafted and shared with DICON, pending presidential approval.
As part of efforts to reposition the steel sector, the minister revealed plans to organize Nigeria’s inaugural steel summit, bringing together stakeholders to develop a comprehensive blueprint for the industry’s growth.
He also highlighted the progress of the Metallurgical Industry Bill, which has passed its second reading at the House of Representatives.
“The bill, once passed and signed into law, will provide a regulatory framework for both private and corporate steel players, ensuring proper governance and development of the sector,” he said.
Audu noted that the federal government was attracting foreign direct investments (FDI) into the steel industry, referencing President Tinubu’s visit to New Delhi in September 2023, where a commitment was made for the production of five million metric tonnes of steel in Nigeria.
“In addition, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity,” he said.
He further disclosed that the ministry was working on a 5-10 year roadmap for the steel industry, incorporating best practices from other countries.
The minister acknowledged the steel sector’s challenges, stating that it had remained non-functional for 45 years. However, he 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 implemented in the next five years, we will achieve all our objectives and significantly reduce the country’s reliance on imported steel,” he said.
Nigeria Imports $4bn Steel Annually – Minister is first published on The Whistler Newspaper
