President Bola Tinubu has restated his administration’s resolve to reposition the steel sector as the industrial heart of Nigeria and the hub of the nation’s economic diversification.
Accordingly, the President outlined ongoing efforts by his administration to revamp legacy projects in the sector, such as the Ajaokuta Steel Company, the Aluminium Smelter Company of Nigeria, the National Iron Ore Mining Company, and the Delta Steel Company (now called Premium Steel and Mines), among others.
Speaking on Wednesday in Abuja when he declared open the Inaugural Stakeholders’ Summit on the Development of the Steel Sector in Nigeria, the President, who was represented at the maiden event by Vice President Kashim Shettima, noted that his administration has since established a solid bureaucracy in ensuring that the steel sector becomes the engine for national transformation.
This, he said, followed the creation and reconfiguration of the Ministry of Steel Development on his assumption of office in 2023, with a mandate to lead the charge in industrialisation.
“It has been positioned as the fulcrum for economic diversification. It is a signal of our seriousness to extract, process, and commercialise our God-given endowments.”
Tinubu outlined some of his administration’s efforts at transforming the sector to include the signing of a Memorandum of Understanding with Tyazhpromexport (TPE) and its consortium “to rehabilitate and operate the Ajaokuta Steel Plant and the National Iron Ore Mining Company in Itakpe.
‘In parallel, we have engaged other proposals from China and additional partners. A final decision is under careful review. A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, is currently ongoing. It will inform our next steps and shape investor selection.
“Our journey is not limited to old dreams. We are building new pillars. We have launched the construction of five mini-LNG plants in Ajaokuta. These are valued at over 500 million dollars. The project is in partnership with NNPC Limited and private sector stakeholders.
“We are also concluding an agreement with the Ministry of Defence and the Defence Industries Corporation of Nigeria. This will enable the production of military hardware at the Ajaokuta Engineering Workshop,” he said.
He added that the federal government was currently establishing an Industrial Park within the Ajaokuta area to host a Free Trade Zone.
On ongoing efforts to revive the Aluminium Smelter Company of Nigeria in Ikot-Abasi, Akwa Ibom State President Tinubu said a new investment proposal of 465 million dollars has been submitted by the current management, adding that the six-year plan to restore full capacity would be announced after a detailed review of the Ministry’s recommendations.
Revealing plans to revamp other legacy assets in the sector, the President said the management of Delta Steel Company, now Premium Steel and Mines, has committed to begin rehabilitation and operations within 18 months, depending on the availability of raw materials.
“We have also attracted a new project by Stellar Steel, part of the Inner Galaxy Group. They are investing $400 million to build a new plant in Ewekoro, Ogun State. This facility will produce hot-rolled coils and plates. It is a bold step toward import substitution and value addition.”
Tinubu described the stakeholders’ summit as proof of his administration’s resolve “to make the steel industry the backbone of Nigeria’s industrial future”.
“We aim to create over 500,000 direct and indirect jobs. We have already developed a ten-year roadmap for the sector. We have outlined a three-year plan for the operationalisation of Ajaokuta. These plans focus on infrastructure, regulatory reform, and capacity development.”
Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualise the plan alone.
“But we cannot do this alone. Government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge,” he appealed.
Earlier in his opening address, Minister of Steel Development, Prince Shuaibu Audu, assured stakeholders that the potential of the steel sector is obvious, ranging from its market size to federal government incentives.
He noted that even though Nigeria is well-endowed with steel-making raw materials, it has yet to fully explore its potential for industrial development.
On his part, the Chairman of the Senate Committee on Steel Development, Senator Patrick Ndubueze, said the summit serves as a platform to facilitate robust engagement among industry stakeholders, the international community and others, to effectively shape Nigeria’s steel industry value chain.
Also, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, emphasised that the Tinubu administration was committed to promoting local value creation by prioritising domestic production and supporting the local economy.
For the Minister for Solid Minerals Development, Dele Alake, the Nigerian steel industry is poised to move from stagnation to strength and from isolation to global relevance under the leadership of President Tinubu.
“Our goal is to position Nigeria as a steel hub of West Africa anchored on local beneficiation, sustainable practices, and public-private partnerships,” he said.
Also, the Minister of Transportation, Ahmed Alkali expressed optimism that existing relevant policies, such as the Nigerian Minerals and Mining Act and other related laws, will provide the framework to reposition the Nigerian steel industry.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, who was represented by Mrs. Amaka Okereke stressed that the revival of the nation’s steel sector holds the promise of reducing import dependence and enabling the growth of countries that rely on these vital resources.
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