The Minister of Steel Development, Shuaibu Abubakar-Audu, has unveiled plans to collaborate with the Ministry of Defence and the Defence Industries Corporation of Nigeria to manufacture military hardware for the Nigerian Armed Forces and other security agencies.
During his visit to the National Steel Raw Materials Exploration Agency in Kaduna on Thursday, Audu disclosed that a Memorandum of Understanding had already been drafted and shared with DICON, awaiting presidential approval.
Highlighting the strategic vision of President Bola Tinubu’s administration, the minister emphasized the rehabilitation of Ajaokuta Steel Company as a top priority.
He noted that integrating military hardware production into the steel complex aligns with the broader goal of establishing a military-industrial complex in Nigeria.
Beyond the defence sector, Audu addressed Nigeria’s high dependence on steel imports, which currently amounts to about $4 billion annually.
He stressed the urgency of promoting import substitution to ease pressure on foreign exchange reserves.
“The fact that we are spending so much on steel imports underscores the need to shift our focus towards local production,” he stated.
He further described NSRMEA as a pivotal institution in the Federal Government’s strategy to expand Nigeria’s economy to $1 trillion by 2030.
“For Nigeria to produce steel in the large quantities we desire, it is very important that the exploration arm of the industry is operating at full capacity,” Audu said, commending NSRMEA for being one of the best-performing agencies under his ministry.
As part of efforts to revamp the steel industry, the minister revealed plans to host Nigeria’s first-ever steel summit, bringing together key stakeholders to develop a comprehensive roadmap for the sector’s advancement.
He also provided updates on the Metallurgical Industry Bill, which has passed its second reading at the House of Representatives.
Once enacted, the bill will establish a regulatory framework for private and corporate players in the steel industry, ensuring proper governance and sustainable development.
Speaking on foreign investments, Audu cited President Tinubu’s visit to New Delhi in September 2023, where a commitment was secured for the production of five million metric tonnes of steel in Nigeria.
Additionally, he announced a $300 million investment by Chinese company Galaxy in a steel plant in Ogun State, a move expected to bolster the country’s steel production capacity.
The ministry is also developing a 5-to-10-year roadmap for the steel industry, drawing from international best practices.
Acknowledging the sector’s long-standing challenges, Audu pointed out that Nigeria’s steel industry has remained dormant for 45 years.
However, he expressed confidence that the ongoing reforms would bring about its revival.
“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 assured.
