The Federal Government has announced plans to manufacture military equipment at Ajaokuta Steel Company in collaboration with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON).
During a visit to the National Steel Raw Materials Exploration Agency in Kaduna, the Minister of Steel Development, Shuaibu Abubakar-Audu, revealed that a Memorandum of Understanding (MoU) has been drafted and shared with DICON, pending presidential approval.
Boosting Local Military Production
Audu emphasized that one of President Bola Tinubu’s key initiatives is the revitalization of Ajaokuta Steel, integrating military hardware production into the facility.
This move aligns with the broader goal of establishing a military-industrial complex in Nigeria.
He also pointed out that Nigeria imports approximately $4 billion worth of steel annually, stressing the urgent need for local production to reduce dependency on foreign imports and ease pressure on the nation’s foreign exchange.
Steel Industry Overhaul and Future Plans
The minister highlighted the steel sector’s role in the Federal Government’s plan to expand Nigeria’s economy to $1 trillion by 2030.
He commended the National Steel Raw Materials Exploration Agency for its contributions, noting its ranking as one of the best-performing agencies under the ministry.
To further develop the steel industry, the government plans to:
- Host Nigeria’s first-ever steel summit to unite stakeholders in crafting a roadmap for the sector.
- Push forward the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives. Once signed into law, the bill will provide a regulatory framework for private and corporate steel players.
- Attract Foreign Direct Investments (FDI), including a $300 million investment from Chinese company Galaxy to build a steel plant in Ogun State.
Revitalization of the Steel Sector
Audu acknowledged the 45-year stagnation of the Ajaokuta Steel Company but expressed optimism that ongoing reforms will revive the industry.
“Our goal is to produce 10 million metric tonnes of steel annually.
With full implementation of our strategies over the next five years, we will reduce dependence on imported steel and position Nigeria as a major steel producer,” he stated.
Stay updated with NIGPOST for more developments on Nigeria’s steel industry.
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