The Minister of Steel Development, Shuaibu Abubakar-Audu, has announced plans to collaborate with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to begin the domestic production of military hardware for the Nigerian Armed Forces and other security agencies. This move is part of a broader strategy to integrate military hardware production into the revitalization of Nigeria’s steel industry, with particular focus on the Ajaokuta Steel Company, a key asset in the country’s industrial future.
During a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday, Audu revealed that a Memorandum of Understanding (MoU) has already been drafted with DICON and is awaiting presidential approval. He explained that one of President Bola Tinubu’s key objectives is to rehabilitate Ajaokuta Steel, and integrating military hardware production into this complex is part of efforts to establish a domestic military-industrial complex in Nigeria.
In addition to this, Audu highlighted Nigeria’s heavy reliance on steel imports, with the country spending approximately $4 billion annually on steel imports. He stressed the importance of import substitution to reduce pressure on the nation’s foreign exchange reserves and improve the domestic steel industry’s capacity.
“The agency is a cornerstone in the Federal Government’s plan to grow Nigeria’s economy to $1 trillion by 2030,” Audu noted. He emphasized that for Nigeria to produce steel in the quantities required for economic growth and infrastructure development, it is essential that the exploration arm of the industry, such as NSRMEA, operates at full capacity.
Audu commended the NSRMEA for its performance, citing it as one of the top-performing agencies within the ministry. He further shared plans for Nigeria’s inaugural steel summit, an initiative designed to bring together stakeholders to create a comprehensive blueprint for the sector’s growth. This summit, Audu hopes, will accelerate the development of a competitive steel industry in Nigeria.
In legislative developments, the minister provided an update on the Metallurgical Industry Bill, which has successfully passed its second reading in the House of Representatives. Once enacted, the bill will create a regulatory framework for both private and corporate steel players, ensuring transparency and governance within the sector.
Audu also pointed to Nigeria’s efforts to attract foreign direct investment (FDI) into the steel industry, highlighting commitments made during President Tinubu’s visit to New Delhi in September 2023. The president’s visit resulted in a promise to produce five million metric tonnes of steel annually within Nigeria. Additionally, a Chinese company, Galaxy, is set to invest $300 million into a steel plant in Ogun State, a development that will contribute significantly to expanding Nigeria’s steel production capacity.
Looking ahead, Audu revealed that the ministry is working on a 5-10 year roadmap for the steel industry, incorporating best practices from successful steel-producing nations. Despite the challenges facing the sector, which has remained largely non-functional for the past 45 years, Audu remains optimistic that the ongoing reforms will restore the industry to its full potential.
“Our target is to produce 10 million metric tonnes of steel annually,” Audu said. “Once our plans are fully implemented within the next five years, we will achieve all our objectives and drastically reduce Nigeria’s dependence on imported steel.”
