The Minister of Steel Development, Prince Shuaibu Abubakar Audu, highlights the National Steel Raw Materials Exploration Agency as key to Nigeria’s economic growth objectives aimed at $1 trillion by 2030. He supports efforts to rehabilitate the Ajaokuta Steel Company, emphasizes import substitution, and details plans for military hardware production. A legislative framework is in progress to bolster the steel sector, with foreign investments expected to enhance production capacity significantly.
Prince Shuaibu Abubakar Audu, the Minister of Steel Development, stated that the National Steel Raw Materials Exploration Agency (NSRMEA) is critical to the Nigerian government’s economic growth plan, aimed at achieving a $1 trillion economy by 2030. He expressed these views during a recent visit to the agency in Kaduna, highlighting that President Bola Tinubu is committed to rehabilitating the Ajaokuta Steel Company.
According to Minister Audu, Nigeria currently imports an estimated $4 billion worth of steel annually, underscoring the urgent need for import substitution to alleviate the burden on foreign exchange. He emphasized that the exploration sector must operate at full capacity to meet the nation’s steel production requirements.
The Minister praised the NSRMEA for its exemplary performance, indicating that it has previously been recognized as one of the top-performing agencies within his ministry. He also revealed plans to collaborate with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to facilitate military hardware production, aligning with President Tinubu’s vision for Ajaokuta’s revival.
Audu mentioned the drafting of a Memorandum of Understanding (MoU) with DICON, which is pending presidential approval. He announced intentions to convene a summit for stakeholders in the steel industry to devise a comprehensive growth strategy. Furthermore, he informed that the Metallurgical Industry Bill has successfully reached its second reading in the House of Representatives, aiming to establish a regulatory framework for the steel sector.
Additionally, the Minister highlighted the government’s efforts to attract foreign direct investments (FDIs) into the steel industry. He cited a commitment made during President Tinubu’s recent visit to New Delhi in September 2023 for the production of five million metric tons of steel in Nigeria. He also mentioned a Chinese company’s significant $300 million investment in a steel plant in Ogun State, marking a substantial enhancement of Nigeria’s production capacity.
Minister Audu expressed confidence that the ongoing reforms would revitalize the industry, with a target to produce 10 million metric tons of steel annually. He asserted that the achievement of these objectives within the next five years would substantially diminish Nigeria’s dependence on imported steel.
The article underscores Minister Audu’s vision for the steel industry as a pivotal element in Nigeria’s economic growth, advocating for enhanced local production and reduced imports. Key initiatives include collaboration with defense entities, potential investments, and legislative support aimed at establishing a robust regulatory framework. The optimistic outlook for achieving substantial steel production hinges on the effective implementation of outlined strategies over the next few years.
Original Source: www.thisdaylive.com
