Ajaokuta Steel
The Federal Government is taking a significant step towards strengthening Nigeria’s defense capabilities with a plan to produce military hardware locally. The Minister of Steel Development, Shuaibu Abubakar-Audu, revealed that his ministry is partnering with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to manufacture military hardware for the Nigerian Armed Forces and other security agencies in the Ajaokuta steel.
During his visit to the National Steel Raw Materials Exploration Agency in Kaduna, the minister disclosed that a Memorandum of Understanding (MoU) had already been drafted and shared with DICON, pending presidential approval. He emphasized that this initiative aligns with President Bola Tinubu’s objective of revitalizing Ajaokuta Steel Company.
Audu stated that the rehabilitation of Ajaokuta Steel Company is not just about steel production but also about integrating military hardware manufacturing into its operations. This, he explained, is part of a broader vision to establish a military-industrial complex in Nigeria, ensuring that the country can produce essential defense equipment domestically rather than relying on expensive imports.
The minister pointed out that Nigeria currently imports around $4 billion worth of steel annually. He stressed that this places a heavy burden on the country’s foreign exchange reserves and highlights the urgent need for import substitution. By ramping up local steel production, the government aims to reduce dependence on foreign steel and redirect resources into national development.
Audu described the National Steel Raw Materials Exploration Agency as a crucial component in achieving this goal. He emphasized that for Nigeria to become a major steel producer, the exploration sector must operate at full capacity. He commended the agency for its outstanding performance, noting that assessments ranked it among the best-performing institutions under the Ministry of Steel Development.
As part of efforts to reposition the steel industry, the minister announced plans to organize Nigeria’s first-ever steel summit. This gathering of industry stakeholders will develop a comprehensive roadmap for the growth and transformation of the steel sector. The summit will serve as a platform to address key challenges, attract investments, and create a sustainable framework for steel production in Nigeria.
Audu also spoke about the progress of the Metallurgical Industry Bill, which has successfully passed its second reading at the House of Representatives. Once enacted, the bill will provide a regulatory framework for private and corporate entities in the steel industry, ensuring proper governance and structured development.
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Attracting foreign direct investment into the steel sector is another priority for the government. The minister recalled President Tinubu’s visit to New Delhi in September 2023, where a commitment was made to produce five million metric tonnes of steel in Nigeria. He also highlighted a $300 million investment by a Chinese company, Galaxy, in a steel plant in Ogun State. These investments, he said, will significantly boost Nigeria’s steel production capacity and contribute to industrial growth.
Furthermore, the Ministry of Steel Development is working on a long-term roadmap for the industry, incorporating global best practices to ensure sustainable growth. Audu acknowledged the challenges facing the steel sector, noting that it has remained largely non-functional for the past 45 years. However, he expressed optimism that ongoing reforms will revive the industry and position Nigeria as a major steel producer.
The minister outlined the government’s ambitious target of producing 10 million metric tonnes of steel annually. He assured Nigerians that within the next five years, the country would achieve self-sufficiency in steel production, significantly reducing reliance on imports and strengthening the economy. This, he emphasized, is not just about steel but about national development, economic diversification, and job creation.
