Nigeria’s Federal Ministry of Steel Development has outlined plans to increase the country’s steel production capacity to 10 million metric tons annually.
Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, declared plans to produce 10 million metric tons of steel annually within five years to reduce reliance on imports. The move aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda to strengthen local industries and save foreign exchange.
During his visit to the National Steel Raw Materials Exploration Agency (NSRMEA) and the Defence Industries Corporation of Nigeria (DICON) in Kaduna, Minister Audu stressed the importance of import substitution. He stated that Nigeria consumes around 10 million tons of steel annually, with over 70% of the demand relying on imports, costing the country approximately $4 billion each year.
The minister emphasized NSRMEA’s critical role in reaching the nation’s steel production targets, calling the agency a key pillar in the federal government’s strategy to expand the economy to $1 trillion by 2030. He marked that the efficient operation of the industry’s exploration sector is essential for large-scale steel production to reach its full potential.
He also shared the ministry’s plans to host an inaugural steel summit, bringing together stakeholders to develop a detailed blueprint for the industry’s growth. He further mentioned the ministry is creating a 5- to 10-year roadmap for the steel sector, drawing on best practices from other countries.
To strengthen the steel industry’s foundation, the minister highlighted the advancement of the Metallurgical Industry Bill, which has cleared its second reading in the House of Representatives. Once enacted, the bill will establish a regulatory framework for private and corporate steel players, ensuring effective governance and sectoral growth.
The Federal Government is fostering foreign direct investment in the steel industry. Additionally, Chinese firm Galaxy is investing $300 million in a steel plant in Ogun State to boost production capacity.
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