Nigeria spends $4 billion annually on steel imports, emphasizing the need for import substitution. Minister Audu underscores the critical role of NSRMEA in achieving Nigeria’s economic goals. Plans to partner with the Defence Ministry for military hardware, along with livestock consumption insights from DAWN Commission, highlight strategic initiatives for domestic production.
Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, revealed that the nation spends approximately $4 billion annually on steel imports. He emphasized the importance of import substitution to ease pressure on foreign exchange. During his recent visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna, the minister underscored the agency’s essential role in the government’s goal to expand the economy to $1 trillion by 2030. Achieving large-scale steel production requires the exploration sector to operate at full capacity, he stated.
Minister Audu commended NSRMEA as one of the most effective agencies under the ministry and announced plans for collaboration with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware. Furthermore, he highlighted that over N800 billion is spent monthly on red meat in Southwest Nigeria, driven by significant livestock consumption, as discussed by Dr. Seye Oyeleye, Director-General of the Development Agenda for Western Nigeria (DAWN) Commission.
Oyeleye pointed out that the Southwest region slaughters approximately 10,000 cows daily, with Lagos consuming a significant portion of that total. He stressed the need for the Southwest to become more involved in the livestock sector, rather than remaining solely consumers. The DAWN Commission has proposed a ten-year livestock development plan to help bolster production in meat, milk, and poultry.
The Community-Led Development Toolkit (COLDET) project was recently discussed, which aims to empower local communities and foster sustainable development. According to Oyeleye, extensive engagement with community stakeholders will be central to COLDET’s approach. The initiative will focus on resource assessment and strategic planning, ultimately enabling communities to take charge of their development.
In addition to this, Minister Audu highlighted the rehabilitation of the Ajaokuta Steel Company as a priority, which would integrate the production of military hardware, fostering a military-industrial complex in Nigeria. He anticipates that new investments in the sector, including a $300 million commitment from a Chinese company, Galaxy, will significantly increase steel production capacity.
The minister also discussed the pending Metallurgical Industry Bill, which aims to establish a regulatory framework for the steel sector in Nigeria. He expressed optimism about reforms to revive this critical industry, targeting an annual steel production of 10 million metric tons to reduce reliance on imports. Both Audu and Maj Gen Aniedi Edet, Director-General of DICON, discussed the potential of the military partnership to enhance Nigeria’s self-sufficiency in military hardware.
Additionally, after visiting DICON’s factory, Minister Audu met with former President Muhammadu Buhari and the Kaduna Deputy Governor, Dr. Hadiza Balarabe, to outline his objectives for the steel sector.
In summary, Nigeria’s annual expenditure of $4 billion on steel imports highlights a pressing need for domestic production, as articulated by Minister Audu. Collaborative efforts between various ministries seek to bolster both steel manufacturing and livestock production in the Southwest. The anticipated reforms, regulatory frameworks, and foreign investments aim to enhance the steel sector while reducing reliance on imports. Minister Audu’s commitment to revitalizing Nigeria’s industrial capacity is evident in both the steel industry initiatives and the budding military-industrial complex.
Original Source: economicconfidential.com
