NIGERIA TO PRODUCE 10M TONNES OF STEEL ANNUALLY TO REDUCE IMPORT
-Discloses partnership with DICON for production of Military hardware
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, has said that under the Renewed Hope Agenda of President Bola Ahmed Tinubu, their target is to produce 10 million metric tonnes of steel annually so as to significantly reduce the country’s reliance on imported steel.
“Once our plans are fully implemented in the next five years, we will achieve all our objectives,” he said.
He spoke in Kaduna on Thursday, while on a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) and the Defence Industries Corporation of Nigeria (DICON).The Minister also paid a courtesy call on the Governor of Kaduna State, Senator Uba Sani, who was represented by the Deputy Governor, Dr. Hadiza Balarabe.
The Minister who said Nigeria imports about $4 billion worth of steel annually,underscored the need for import substitution so as to reduce pressure on foreign exchange.
Describing NSRMEA as a cornerstone in the Federal Government’s plan to grow Nigeria’s economy to $1 trillion by 2030,Minister Audu said “for Nigeria to produce steel in large quantities as we desire, it is very important that the exploration arm of the industry is operating at full capacity.”
He said previous assessments ranked NSRMEA as one of the best-performing agencies under his ministry, and commended the agency for its performance.
According to him, plans were underway to partner with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware in Nigeria.
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.An MoU had already been drafted and shared with DICON, pending presidential approval,” he added.
He said the administration would reposition the steel sector in Nigeria, even as they planned to organize Nigeria’s inaugural steel summit to organize stakeholders who would develop a comprehensive blueprint for the steel industry’s growth and development.
According to him, the Metallurgical Industry Bill, 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.”
“The Federal Government is attracting foreign direct investments (FDI) into the steel industry… President Tinubu was in New Delhi in September 2023, 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 $300 million in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity..The ministry is working on a 5-10 year roadmap for the steel industry, incorporating best practices from other countries.”
