Audu Laments Absence of Comprehensive Legal Framework on Steel Sector

Kasim Sumaina in Abuja

The Minister of Steel Development, Shuaibu Abubakar Audu, Tuesday in Abuja, lamented the absence of a comprehensive legal framework which had long hindered the sector’s growth and global competitiveness.

This was even as Audu called for robust collaborations between the government and private sector stakeholders to accelerate reforms and enhance industrial efficiency.

While unveiling the proposed Nigeria Metallurgical Industry Bill, Audu described the bill as a transformative piece of legislation set to accelerate Nigeria’s economic diversification and industrial growth.

He stressed the bill would establish a robust legal and regulatory framework, unlocking the vast potential of Nigeria’s metallurgical and steel sector.

According to him, “This bill presents a significant opportunity to position Nigeria as a leading player in the global metallurgical value chain. By leveraging our vast mineral resources and industrial potential, we can drive economic diversification and job creation.

“The bill address these challenges by ensuring operational standards, quality control, and stronger enforcement mechanisms to curb illegal mining, scrap metal theft, and substandard imports.”

He however outlined six critical areas the bill addresses for the sector’s holistic development even as he reassured investors of the government’s commitment under President Bola Ahmed Tinubu to provide clear incentives such as tax breaks and grants, adding that efforts to revive the Ajaokuta Steel Company Limited remain a priority.

Similarly, Chairman of House Committee, Nigeria Metallurgical Industry Bill, Hon. Zainab Gimba, described the proposed legislation as a transformative instrument that would reshape Nigeria’s metallurgical sector and strengthen the nation’s economic future.

Zainab said bill is not merely a legislative document; but a strategic instrument poised to shape the future trajectory of our metallurgical network,” Gimba declared.

She noted that the establishment of the Federal Ministry of Steel Development, following its separation from the Ministry of Mines and Steel Development, necessitated a comprehensive review of the bill.

“This will ensure industry-aligned operations, prevent overlaps, and enhance operational efficiency,” she said.

Gimba emphasised regular inspections, adherence to international best practices, and the adoption of modern technologies to minimise environmental impact while ensuring industry integrity.

The bill prioritises local content policies, training programs, and incentives for companies utilizing local resources.

Further according to Gimba, “A well-defined legal framework will deter unethical practices and promote a culture of accountability. The bill also outlines dispute resolution mechanisms, research and development incentives, and frameworks to foster innovation and collaboration.

“Let us transform these challenges into strategic advantages. By integrating our diverse expertise, we can pioneer a regulatory framework that sets a global standard for sustainable and safe production.”

“The steel sector must be fortified as a cornerstone of Nigeria’s economic progress and developmental stewardship. Together, we can build a sector that is globally competitive and capable of driving sustainable growth,” she said.

Meanwhile, the Professor Abdulkarim Kana Abubakar, Chairman of the Steel Council, painted a stark picture of the sector’s current state, describing it as “a massive shame and national embarrassment.”

“The potential of the steel sector is as significant as that of the petroleum industry. But the reality is far from encouraging. The sector remains largely unregulated, with foreign players exploiting our resources unchecked,” Abubakar lamented.

Abubakar criticised the foreign dominance, especially by Chinese and Indian companies, who he said had set up recycling plants that deprive Nigeria of its resources.

“Thousands of Nigerians depend on this sector, yet it remains neglected. Without proper legislation, we risk the total collapse of the steel industry,” he warned.

Abubakar, however called for urgent legislative reforms, emphasizing that the pending Metallurgical Industry Bill is critical for the sector’s survival.