The Federal Government of Nigeria has announced an ambitious initiative to revive all moribund steel companies across the country, aiming to restore their critical role in national development more than 20 years after a failed privatization effort left the sector in disarray.
The announcement was made by President Bola Tinubu, represented by Vice President Kashim Shettima, during the inaugural National Steel Stakeholders’ Summit in Abuja, themed “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness.”
The steel industry, once envisioned as the backbone of Nigeria’s industrialization, has been crippled since the early 2000s when privatized plants, including the inland rolling mills in Oshogbo, Katsina, and Jos, Delta Steel Company, and the Aluminium Smelter Company of Nigeria, collapsed due to mismanagement and lack of investment.
Nigeria now imports over 90% of its steel, costing approximately $4.5 billion annually and exposing industries to global price volatility.
“The Ajaokuta Steel Company, once our industrial crown jewel, stands idle—a monument to abandoned ambition.
This is not just an economic failure; it is a threat to our sovereignty,” Tinubu stated.
The government’s revival plan targets both privatized and state-owned assets, with a focus on the Ajaokuta Steel Company and the National Iron Ore Mining Company (NIOMCO) in Itakpe.
A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, is underway to assess its condition before selecting a core investor.
In September 2024, a Memorandum of Understanding was signed with Ajaokuta’s original Russian builders, Tyazhpromexport, though alternative partnerships with Chinese firms are being explored due to the Russia-Ukraine conflict.
The administration aims to achieve a production capacity of 10 million tonnes of liquid steel annually by 2030, potentially creating over 500,000 jobs.
Other initiatives include a $465 million proposal to revive the Aluminium Smelter Company in Akwa Ibom, a $400 million Stellar Steel plant in Ogun State, and a $500 million partnership with NNPC Ltd for five mini-LNG plants in Ajaokuta.
The government also plans to produce military hardware at Ajaokuta’s engineering workshops in collaboration with the Ministry of Defence and DICON.
A scrap aggregation policy is being drafted to regulate recycling and ensure raw material supply, with collection centers planned across Nigeria’s six geopolitical zones.
Minister of Steel Development Shuaibu Abubakar Audu outlined a 10-year roadmap for the sector and a three-year plan specifically for Ajaokuta, emphasizing infrastructure upgrades, regulatory reforms, and capacity building.
Legislative efforts are also advancing, with the Metallurgical Industry Bill, National Metallurgical Training Institute Establishment Bill, and amendments to the National Steel Council Act under review in the National Assembly.
The Delta Steel Company, now Premium Steel and Mines Limited, is set to begin rehabilitation within 18 months, with the potential to generate 5,000 direct and 10,000 indirect jobs.
Audu, during a recent visit to the Delta plant, reaffirmed the government’s commitment to creating an enabling environment for investors while ensuring quality production.
However, challenges such as raw material shortages and logistical issues remain, as highlighted by Premium Steel’s CEO, Sahil Vaswani.
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com