Steel Development, Cornerstone of Nigeria’s Economic Growth, Says Audu

John Shiklam in Kaduna

Minister of Steel Development, Prince Shuaibu Abubakar Audu, said National Steel Raw Materials Exploration Agency (NSRMEA) was a cornerstones  of the federal government’s plan to grow the economy to $1 trillion by 2030.

Speaking during a visit to the agency on Thursday in Kaduna, Audu said President Bola Tinubu was determined to rehabilitate the Ajaokuta Steel Company.

According to the minister, Nigeria imports about $4 billion worth of steel annually.

He stressed the need for import substitution to reduce pressure on foreign exchange.

Audu said, “For Nigeria to produce steel in the desired  quantity we desire, it is very important that the exploration arm of the industry is operating at full capacity.”

He commended NSRMEA for its performance, stating that previous assessments ranked the agency  as one of the best-performing agencies under his ministry.

The minister disclosed plans to partner with the Ministry of Defence and the DefenceIndustries Corporation of Nigeria (DICON) to produce military hardware.

He said, “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.”

Audu added that a Memorandum of Understanding (MoU) had been drafted and shared with DICON, and it was awaiting presidential approval.

He said as part of efforts to reposition the steel sector,  plans were underway for  a summit to  bring together stakeholders in the steel sector to develop a comprehensive blueprint for the growth of the industry.

Audu also highlighted the progress of the Metallurgical Industry Bill, which according to him, had passed second reading in 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,” the minister said.

Audu added that the federal government was attracting foreign direct investments (FDIs) to the steel industry.

According to him, during Tinubu’s visit to New Delhi in September 2023,  acommitment was made for the production of five million metric tonnes of steel in Nigeria.

He said in addition, a Chinese company  was investing $300 million in a steel plant in Ogun State, which would go a long way in expanding  Nigeria’s steel production capacity.

The minister expressed optimism that ongoing reforms would revive the industry.

“Our target is to produce 10 million metric tonnes of steel annually,” he stated.

“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,” he added.