The Federal Government has secured a fresh $1 billion steel investment deal, further boosting foreign direct investment (FDI) in Nigeria’s steel sector to over $2.2 billion under the administration of President Bola Ahmed Tinubu.
The agreement was signed in Kolkata, India, between the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and India’s Rashmi Metaliks Group. The deal is expected to span three years and is part of efforts to industrialise Nigeria and reduce reliance on imported steel.
Officials say the investment reflects growing global confidence in Nigeria’s economic reforms and is aimed at strengthening local steel production, creating jobs, and conserving foreign exchange through import substitution.
The government also highlighted Nigeria’s vast steel potential, with over three billion tonnes of iron ore reserves and an annual domestic steel demand estimated at $10 billion.
In addition to the new deal, other ongoing investments in the sector include a $400 million steel plant in Ogun State, a $300 million integrated facility in Kaduna, and a $500 million gas infrastructure project in Ajaokuta to support industrial operations.
Authorities say Nigeria is targeting annual crude steel production of 10 million tonnes by 2030, positioning the country as a major steel hub in Africa.
