Steel Sector Gets Major Boost As Minister Commissions 2 Plants In Lagos

The minister of Steel Development, Prince Shuaibu Abubakar Audu, on Tuesday commissioned two major facilities in Lagos State: Orbit Galvanising Steel Industries Limited and Orbit Fabrication Works Limited.

Audu described the event as a significant milestone in Nigeria’s ongoing efforts to strengthen its steel fabrication sub-sector, noting that the development marks a crucial step forward in domestic industrialisation.

According to a statement issued by the Ministry’s Principal Information Officer, Ijomah E. Opia, the commissioning formed part of the Minister’s working visit to Lagos, during which he is engaging with key private sector stakeholders as the Federal Government intensifies efforts to drive economic growth through industrial collaboration.

Audu commended the African Industries Group (AIG) for its substantial investment in Nigeria’s steel sector, highlighting its role in boosting job creation, promoting local manufacturing, and supporting economic sustainability. He noted that Orbit Fabrication now has the capacity to produce up to 50,000 metric tonnes of fabricated towers annually, contributing to a combined national output of approximately 200,000 metric tonnes.

The minister cited proactive government policies—such as local content development, industrial expansion, and import substitution—as key enablers of the project’s success. He reaffirmed the Federal Government’s commitment to reviving the steel sector before the end of the current administration.

“This facility, a pioneering achievement by African Industries Group in the galvanising sub-sector, reflects the group’s long-term commitment to Nigeria’s industrial development. Through a focus on local production and backwards integration, AIG is playing a vital role in our nation’s economic progress,” he stated.

He also acknowledged the Federal Government’s decision to grant concessionary import duties on galvanised steel products in anticipation of the plant’s establishment.

“I call on both government agencies and private sector actors to prioritise the use of locally fabricated tower products. With our current capacity, Nigeria and the wider ECOWAS region can now be reliably supplied. This plant alone employs over 350 Nigerians and will significantly reduce our dependence on imports,” he added.

Prince Audu emphasised the Ministry’s responsibility to create an enabling environment for investment and ensure a level playing field for all industry participants.

“The commissioning of this project today demonstrates the Federal Government’s commitment to rejuvenating Nigeria’s steel sector. I urge other potential investors to follow the example set by African Industries Group,” he said.

Also speaking at the event, a director at AIG, Rajah Gupta, reaffirmed the company’s 54-year commitment to Nigeria. He noted that AIG has made the most significant non-oil foreign direct investment in the country, particularly in the steel and mining sectors, with over $600 million invested to date.

Gupta disclosed that the group is already producing iron and steel from locally sourced iron ore and will soon begin exporting Basic Raw Iron (BRI) to international markets. He added that the company’s manufacturing strategy is guided by the principle of import substitution—transforming local raw materials into finished goods and conserving the nation’s foreign exchange reserves.

During his visit to Lagos, Prince Audu also paid a courtesy call on the Lagos State Government, where Deputy Governor Dr Kadiri Obafemi Hamzat warmly received him.

The minister expressed his intention to tour steel facilities across the state to better understand the challenges faced by industry operators and to identify areas where government support may be provided.

“We are here to foster deeper collaboration with the Lagos State Government, given that over 60 per cent of Nigeria’s private steel investors are based here. Lagos plays a pivotal role in the nation’s economic journey,” he said.

In response, deputy governor Hamzat thanked the minister for his visit. He reaffirmed Lagos State’s commitment to working closely with the Federal Ministry in supporting the growth and sustainability of steel companies operating in the state.