Ministry of Steel Development says plans are underway to expand its steel production capacity to ten million metric tonnes annually.
The Minister, Prince Shuaibu Audu stated this during a visit to the National Steel Raw Materials Exploration Agency, NSRMEA in Kaduna.
Prince Audu explained that Nigeria imports about four billion dollars worth of steel annually, hence the need for import substitution to reduce pressure on foreign exchange.
“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 explained.
The Minister therefore stressed the importance of the National Steel Raw Materials Exploration Agency in the federal government’s plan to grow Nigeria’s economy to one trillion dollars by twenty thirty .
He further revealed plans by the ministry to organize an inaugural steel summit by bringing together stakeholders to develop a comprehensive blueprint for the industry’s growth.
“The ministry is working on a five to ten year roadmap for the steel industry by incorporating best practices from other countries”.
“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.
Prince Audu further stated that plans to partner with the Ministry of Defence and the Defence Industries Corporation of Nigeria-DICON to produce military hardware, adding that an MoU had already been drafted and shared with DICON, pending presidential approval.
The Minister 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 explained.
Prince Audu noted that the federal government is attracting foreign direct investments into the steel industry, citing President Tinubu’s visit to New Delhi in September twenty twenty three, 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 three hundred million dollars in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity,” he added.
The Minister, who acknowledged the steel sector’s challenges of non-functionality for forty-five years, expressed optimism that ongoing reforms would revive the industry.
