The Nigerian government is reinforcing its commitment to developing a self-sustaining Steel industry, positioning it as a key driver of Economic Growth and industrialisation. The Minister of Steel Development, Prince Shuaibu Abubakar Audu, emphasised that the National Steel Raw Materials Exploration Agency (NSRMEA) plays a critical role in this plan, contributing to the objective of expanding the national Economy to $1 trillion by 2030. With an annual import bill of $4 billion, Nigeria faces significant pressure on its foreign exchange reserves.
To address this challenge, the government is prioritising import substitution by increasing domestic production. Audu stressed that the success of this strategy depends on the full operational capacity of exploration agencies tasked with sourcing essential raw materials for production. Under the current administration, the government development agenda focuses on rehabilitating the Ajaokuta Steel Plant. This initiative is designed to unlock the facility’s potential, ensuring that it contributes to national economic growth. The administration is also integrating military hardware production into Ajaokuta in collaboration with the Defence Industries Corporation of Nigeria (DICON) to establish a military-industrial complex.
Government plans to host a summit for industry stakeholders.
As part of the effort, the Ministry of Defence has already received a Memorandum of Understanding (MoU) for review and is awaiting presidential approval. The government is laying the foundation for an industrial sector that aligns with global standards. A summit bringing together industry stakeholders is in the works, designed to create a comprehensive blueprint for sectoral growth. The move underscores a strategic push to develop a sustainable industrial sector that fosters manufacturing, reduces dependence on imports, and strengthens local capacity.
Furthermore, the Metallurgical Industry Bill, currently advancing in the legislative process, is another crucial step in the government’s development strategy. The bill, now at the second reading stage in the House of Representatives, is expected to provide a regulatory framework for private and corporate players. Once signed into law, it will promote governance and create an enabling environment for investment. Additionally, the government has set an ambitious target to produce ten million metric tonnes annually. The strategy is embedded within the Renewed Hope Agenda, which aims to reduce reliance on imported iron while fostering industrial growth.
Infrastructure, raw material supply, and industry modernisation.
Meanwhile, the Ministry of Steel Development has developed a ten-year sectoral roadmap to guide the industry’s growth. This blueprint includes efforts to strengthen domestic production, encourage foreign investment, and ensure Sustainability within the sector. A major part of this roadmap involves fostering innovation, adopting global best practices, and investing in Infrastructure that supports large-scale metal production. Nonetheless, this success hinges on strategic infrastructure investments, including transportation networks and energy supply. The government recognises these elements as essential to creating a competitive and efficient steel Manufacturing ecosystem.
Therefore, plans are underway to address logistical and energy challenges that have historically hindered industrial growth in the sector. A steady supply of raw materials, such as iron ore and coal, is also critical to achieving the industry’s ambitious production targets. The government is working to enhance exploration and Mining activities to ensure an uninterrupted supply chain for its manufacturing. Leveraging advanced Technology and modernising operations are part of ongoing reforms to boost the sector’s competitiveness and output.
Related Article: Ajaokuta Steel Complex Development in Nigeria
Lastly, the government is implementing policies that align local production with international standards to establish Nigeria as a major player in the global market. These efforts include adopting advanced production techniques and enforcing quality control measures to ensure Nigerian iron products meet global benchmarks. Commendably, the government’s commitment to the industry is about reducing import dependence and creating a robust sector that supports industrial growth, job creation, and economic diversification. The long-term vision is to position Nigeria as a central hub for African steel production, contributing to national development and global competitiveness.