Minister of steel development, Shuaibu Audu, has disclosed that Nigeria imports about $4 billion worth of steel annually.
The minister made the revelation during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna State.
According to him, there was the need for import substitution, with more focus on local production, to reduce pressure on foreign exchange.
Audu pointed out that for Nigeria to produce steel in the quantity it desires, it is important that the exploration arm of the industry is operating at full capacity.
The minister said the exploration agency is one of the cornerstones of the federal government’s plan to grow the economy to $1 trillion by 2030.
He commended the NSRMEA for its performance, noting that previous assessments ranked the agency as one of the best-performing agencies in the ministry.
The minister disclosed plans to partner with the ministry of defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware locally.
According to Audu, one of President Bola Tinubu’s key objectives is the rehabilitation of the 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 said a memorandum of understanding (MoU) had already been drafted and shared with DICON, pending presidential approval.
He further stated that as part of efforts to reposition the steel sector, plans were underway for a summit to gather stakeholders in the steel sector to develop a comprehensive blueprint for the growth of the industry.
The minister also provided update on the metallurgical industry bill, which he said, has passed a 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.
He said the federal government is attracting foreign direct investments (FDI) to the steel industry and 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,” the minister stated.
According to him, during the president’s visit to New Delhi, India, in September 2023, a commitment was made for the production of five million metric tonnes of steel in Nigeria.
He added that a Chinese company was also investing $300 million in a steel plant in Ogun state, adding that all of this will go a long way in expanding Nigeria’s steel production capacity.
