By Musa Bakare
The recent engagements by Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, with private steel operators will significantly influenced the nation’s steel industry, aligning with the federal government’s Renewed Hope Agenda aimed at industrial revitalization and revolution.
Several private iron and steel operators are active in Nigeria, including notable companies such as KAM Holding, African Industries Group (AIG), and Sunflag Steel. Other prominent players include Quantum Steels, Alinco Steel, Aulsteel, Delta Steel, among various others. Additionally, smaller entities like Donasulu Brothers, Arewa Metal Containers, and Brossette Nigeria contribute to the industry’s landscape.
KAM Holding stands as one of the largest indigenous metal and steel production companies in Nigeria, boasting a global operational footprint. AIG, a leading steel manufacturer in Nigeria, is also engaged in renewable energy initiatives, illustrating the broadening scope of the industry. Sunflag Steel Nigeria Limited, a subsidiary of the larger Sunflag Group, has been a pioneer in Nigerian steel manufacturing, underscoring the sector’s developmental potential.
Other companies, such as Quantum Steels, Alinco Steel & Metal Construction Co. Ltd, Aulsteel Investment Ltd, and Delta Steel Company, play crucial roles in the sector, producing essential steel building materials and components.
The steel industry is supported by various mills across the nation, with notable clusters in the South-West region, particularly in Lagos and Ogun states. The Minister’s recent visits to operational sites in these states signify a commitment to engaging directly with stakeholders, fostering a conducive environment for growth.
Prince Shuaibu Abubakar Audu’s outreach to significant players, including African Natural Resources and Mines Limited (ANRML) in Kaduna and KAM Steel in Kwara, emphasizes the government’s commitment to fostering public-private partnerships. These engagements not only recognize substantial investments made by private entities but also encourage further expansion to meet domestic steel demands. This is crucial, especially considering Nigeria’s current expenditure of over $4 billion annually on steel imports.
The Ministry is advocating for the speedy passage of the Nigerian Metallurgical Industry Bill, 2023, which aims to establish a robust regulatory framework. This bill aspires to enhance transparency, combat illegal activities, and attract both local and foreign investments into Nigeria’s metallurgical sector.
In line with the reform agenda of President Tinubu’s administration, the revitalization of major public steel assets is prioritized. This includes the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO). The Ministry has actively sought technical and financial support from international donor agencies to upgrade these operations, paving the way for privatization and operational efficiency.
Further initiatives, such as the establishment of Metallurgical Scrap Collation Centres across Nigeria’s geopolitical zones and enhancements to the Metallurgical Training Institute in Onitsha, are crucial for ensuring a steady supply of raw materials and developing a skilled workforce.
The strategic focus on the steel sector is integral to Nigeria’s broader economic diversification goals. By enhancing domestic steel production, the government aims to reduce import dependence, conserve foreign exchange resources, and create job opportunities. The revival of the steel industry is projected to significantly contribute to the nation’s GDP, with ambitious proposals to increase production capacity to 10 million metric tonnes of steel annually.
Through a continued engagements with private steel operators nationwide, Prince Shuaibu Audu is set to catalyze multiple initiatives aimed at revitalizing the steel industry in Nigeria. With strategic partnerships, policy reforms, infrastructure development, and capacity building, these efforts are poised to transform the steel sector into a cornerstone of Nigeria’s industrial and economic growth.
– Musa Asiru Bakare, a member of the Tinubu Support Group (TSG), writes from Lokoja, Kogi State capital.
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