The Federal Ministry of Steel Development has unveiled an ambitious plan to increase Nigeria’s steel production capacity to 10 million metric tonnes per year, as part of efforts to drive industrial growth and reduce reliance on imports.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, disclosed this initiative during his visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna.
Prince Audu emphasized that Nigeria spends approximately $4 billion annually on steel imports, underscoring the urgent need for import substitution to ease pressure on the country’s foreign exchange reserves.
“For Nigeria to produce steel in the large quantities we desire, it is crucial that the exploration arm of the industry operates at full capacity,” he stated.
He described the NSRMEA as a strategic institution in the federal government’s broader vision of expanding Nigeria’s economy to $1 trillion by 2030.
Key Initiatives for Steel Sector Growth
As part of the revitalization efforts, the Ministry plans to host Nigeria’s inaugural Steel Summit, where industry stakeholders will collaborate to develop a comprehensive roadmap for the sector’s growth.
Prince Audu also reiterated President Bola Tinubu’s commitment to rehabilitating the Ajaokuta Steel Company, integrating military hardware production into its operations as part of a larger strategy to establish a military-industrial complex in Nigeria.
He highlighted ongoing collaborations with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to manufacture military hardware locally. A draft Memorandum of Understanding (MoU) has already been shared with DICON and is awaiting presidential approval.
Additionally, the Minister noted the progress of the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives. “Once passed and signed into law, the bill will provide a regulatory framework for private and corporate steel players, ensuring proper governance and sector development,” he explained.
Attracting Foreign Investment in Steel Production
Prince Audu further outlined efforts to attract foreign direct investment into the steel sector. He referenced President Tinubu’s visit to New Delhi in September 2023, where an agreement was reached to produce 5 million metric tonnes of steel in Nigeria.
Moreover, a Chinese firm, Galaxy, has committed to investing $300 million in a steel plant in Ogun State, signaling growing investor confidence in Nigeria’s steel industry.
Despite challenges that have hindered the sector for over 45 years, the Minister expressed confidence that ongoing reforms will revive the industry and position Nigeria as a key player in global steel production.
