The Federal Government has unveiled plans to manufacture military hardware at the Ajaokuta Steel Company as part of efforts to boost Nigeria’s defence industry and reduce reliance on imports.
The Minister of Steel Development, Shuaibu Abubakar-Audu, disclosed this during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday. He revealed that the Ministry of Steel Development is collaborating with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to integrate military hardware production into the steel complex.
“One of President Bola Tinubu’s key objectives is the rehabilitation of Ajaokuta Steel Company. We are working towards integrating military hardware production into the complex as part of a broader plan to establish a military-industrial complex in Nigeria,” Audu stated.
$4 Billion Steel Import Bill and the Need for Local Production
Audu highlighted Nigeria’s staggering $4 billion annual steel import bill, emphasizing the need for local production to reduce pressure on foreign exchange. He described NSRMEA as a cornerstone of the Federal Government’s plan to grow 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,” he said.
The minister commended NSRMEA for its performance, noting that previous assessments ranked it among the best-performing agencies under the ministry.
Ajaokuta Steel and the Future of Nigeria’s Steel Industry
As part of the government’s steel sector revitalization strategy, the minister announced plans to host Nigeria’s first-ever steel summit, bringing together key stakeholders to develop a roadmap for industry growth. He also revealed progress on the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives.
“The bill, once passed and signed into law, will provide a regulatory framework for both private and corporate steel players, ensuring proper governance and development of the sector,” he said.
Foreign Direct Investment and Infrastructure Development
The Federal Government is actively attracting foreign direct investment (FDI) to the steel sector. Audu referenced President Tinubu’s visit to New Delhi in September 2023, where agreements were made to produce five million metric tonnes of steel in Nigeria.
Additionally, he noted that a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State, a move set to expand the country’s steel production capacity.
Reviving a Dormant Industry
Despite being non-functional for 45 years, Audu expressed optimism about ongoing reforms aimed at reviving the steel sector. He revealed that the government is working on a 5-10-year roadmap, incorporating global best practices to ensure sustainability and efficiency.
“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,” Audu affirmed.
Conclusion
The proposed integration of military hardware production at Ajaokuta Steel, along with ongoing reforms, underscores the Federal Government’s commitment to revitalizing Nigeria’s steel sector. These efforts aim to drive industrialization, reduce dependence on imports, and position Nigeria as a key player in the global steel market.
