The Minister of Steel Development, Shuaibu Abubakar-Audu, has announced plans to collaborate with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware for the Nigerian Armed Forces and other security agencies.
Speaking during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday, Audu revealed that a Memorandum of Understanding (MoU) has already been drafted and shared with DICON, pending presidential approval.
“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,” he said.
The minister also highlighted Nigeria’s heavy reliance on steel imports, noting that the country spends approximately $4 billion annually on steel imports. He stressed the urgent need for import substitution to reduce pressure on foreign exchange reserves.
Audu described NSRMEA as a critical player in 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 operates at full capacity,” he stated.
He commended NSRMEA for its performance, noting that previous assessments ranked it as one of the best-performing agencies under the ministry.
As part of efforts to reposition the steel sector, Audu revealed plans to organize Nigeria’s inaugural steel summit, which will bring together stakeholders to develop a comprehensive blueprint for the industry’s growth. He also highlighted the progress of 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.
The minister further disclosed that the Federal Government is attracting foreign direct investments (FDI) into the steel industry. He referenced President Tinubu’s visit to New Delhi in September 2023, where a commitment was made for the production of five million metric tonnes of steel in Nigeria. Additionally, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State.
Audu expressed optimism about the sector’s revival, despite its non-functional state for the past 45 years. He outlined a 5-10-year roadmap for the steel industry, incorporating best practices from other countries.
“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,
