Shuaibu Abubakar Audu, minister of Steel Development, says the National Steel Raw Materials Exploration Agency (NSRMEA) is one of the 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, he said President Bola Tinubu is determined to rehabilitate the Ajaokuta Steel Company.
According to the minister, Nigeria imports about $4 billion worth of steel annually, stressing 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, noting 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 Defence Industries Corporation of Nigeria (DICON) to produce military hardware.
“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,” he said.
Audu added that a Memorandum of Understanding (MoU) had already been drafted and shared with DICON, pending presidential approval.
He said as part of efforts to reposition the steel sector, plans are 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, has passed a 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 minister said.
Audu added that the federal government is attracting foreign direct investments (FDI) to the steel industry.
According to him, during President Tinubu’s visit to New Delhi in September 2023, a commitment was made for the production of five million metric tonnes of steel in Nigeria.
He added that in addition, a Chinese company, is investing $300 million in a steel plant in Ogun state which will 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.
“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 said.
