Nigeria targets 10m tonnes of annual steel production to slash imports
BY TUNDE OPALANA
Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, has unveiled an ambitious plan to produce 10 million metric tonnes of steel annually within the next five years, aiming to significantly reduce the nation’s reliance on imported steel.
This initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to bolster local industries and conserve foreign exchange.
Speaking in Kaduna during visits to the National Steel Raw Materials Exploration Agency (NSRMEA) and the Defence Industries Corporation of Nigeria (DICON), Minister Audu emphasized the urgency of import substitution. He noted that Nigeria currently consumes approximately 10 million tonnes of steel annually, with over 70 per cent of this demand met through imports, costing the nation about $4 billion each year.
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The minister highlighted NSRMEA’s pivotal role in achieving the country’s steel production goals, describing the agency as the cornerstone in the Federal Government’s plan to grow Nigeria’s economy to $1 trillion by 2030.
He asserted that for Nigeria to produce steel in large quantities, it is essential that the exploration arm of the industry operates at full capacity.
In a strategic move to enhance domestic military capabilities, Minister Audu announced plans to collaborate with the Ministry of Defence and DICON for the local production of military hardware. Established in 1964, DICON has been instrumental in equipping Nigeria’s armed forces with locally produced military hardware and continues to drive innovation and industrialization in the defense sector.
An initial Memorandum of Understanding (MoU) has been drafted and shared with DICON, pending presidential approval.
To further solidify the foundation of the steel industry, the administration plans to organize Nigeria’s inaugural steel summit, bringing together stakeholders to develop a comprehensive blueprint for the sector’s growth and development.
Additionally, the Metallurgical Industry Bill has passed its second reading in the House of Representatives. Once enacted, this legislation will provide a regulatory framework for both private and corporate steel players, ensuring proper governance and development of the sector.
The Federal Government is also actively attracting foreign direct investments (FDI) into the steel industry. Notably, during President Tinubu’s visit to New Delhi in September 2023, a commitment was secured for the production of five million metric tonnes of steel in Nigeria. In a related development, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State, further expanding Nigeria’s steel production capacity.
