In a significant boost to Nigeria’s industrial ambitions, the Federal Government has signed a Memorandum of Understanding (MoU) with India’s Rashmi Metaliks Group for a projected $1 billion investment in the steel sector over the next three years.
The agreement was signed on Tuesday in Kolkata during a visit by Nigeria’s Minister of Steel, Shuaibu Audu, who toured the company’s advanced steel plant.
Minister Audu praised the facility’s scale, cutting-edge technology, and fully integrated operations from Direct Reduced Iron (DRI) and pig iron to billets and finished ductile iron pipes calling it a model of modern industrial efficiency.
This deal aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to position Nigeria as Africa’s leading steel hub with a target of producing about 10 million tonnes of crude steel annually by 2030.
Nigeria holds over 3 billion tonnes of iron ore reserves, some with up to 67% iron content, while annual domestic steel consumption is estimated at around $10 billion.
According to the minister, the MoU marks a major milestone in repositioning the steel industry, creating jobs, conserving foreign exchange through import substitution, and shifting Nigeria from exporting raw minerals to becoming a value-adding industrial economy.
The partnership also underscores growing economic ties between Nigeria and India in steel, mining, and manufacturing. Rashmi Metaliks Vice Chairman Sunil Kumar Patwari expressed commitment to delivering on the MoU, provided the necessary government support.
This latest investment adds to recent momentum in the sector:A $400 million Chinese-Nigerian joint venture (Stellar Steel) in Ogun State, set to begin operations by November 2026.
African Industries Group’s integrated iron and steel plant in Kaduna State, with $300 million already invested.
A $500 million project for five mini-LNG plants in Ajaokuta to support gas supply to steel industries.
Minister Audu invited more Indian investors to explore opportunities in integrated steel plants using DRI and electric-arc furnace technologies, while assuring an enabling environment through policy stability and incentives.
The Nigerian delegation, which included ministry officials and representatives from the Nigerian High Commission in New Delhi, will continue engagements with Indian counterparts before returning home.
This deal represents a concrete step toward industrializing Nigeria’s vast mineral resources and reducing reliance on steel imports.
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