Nigeria Spends $4bn on Steel Imports Annually
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, has said Nigeria imports about $4 billion worth of steel annually, stressing the need for import substitution to reduce pressure on foreign exchange (forex).
Speaking during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna, Audu described the agency as a cornerstone 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 is operating at full capacity,” he said.
He commended NSRMEA for its performance, noting that previous assessments ranked it as one of the best-performing agencies under the ministry.
The minister disclosed plans to partner with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware.
Also, the Development Agenda for Western Nigeria (DAWN) Commission has said the Southwest region spends over N800 billion monthly on red meat consumption. DAWN Commission is the dedicated implementation agency for the sustainable development of Southwest Nigeria.
The Director-General of DAWN, Dr. Seye Oyeleye noted that approximately 10,000 cows are slaughtered daily within the region.
He spoke during the signing of a Memorandum of Understanding (MoU) with the Growth & Development Foundation (AGDF) in Osun, aimed at implementing the Community-Led Development Toolkit (COLDET) project.
“The global livestock industry is valued at nearly $10 billion annually, with Southwest Nigeria being the largest consumer of livestock products in the country. Data indicates that Lagos alone accounts for about 7,000 cows consumed each day, while the entire region sees a total of 10,000 to 11,000. At a conservative estimate of N400, 000 per cow, this results in approximately N40 billion daily.
Over five days, this amounts to N200 billion, and over four weeks, or 20 days, the total reaches N800 billion,” he said.
He lamented that despite the region being the largest consumer of livestock products, entrepreneurs and organisations in the region were participating in the sector’s value chain.
“We have come to the conclusion that it is inconceivable for such a significant industry to operate in the southwest without our active involvement. Currently, we find ourselves on the sidelines.
It is widely acknowledged that approximately 99 percent of the livestock we consume, not just cattle, is sourced from outside the region. Instead of remaining mere consumers, why shouldn’t the Southwest also take on the role of cattle producers? We recognize that we possess the arable land and the necessary technology. What remains is to create incentives for those interested in entering the livestock farming sector. Several state governments in the southwest are already taking steps to address this issue,” he said.
He stated that it was imperative for the regional states to advance the livestock sector and increase the production of meat, milk, and poultry. Furthermore, he revealed that DAWN has delivered a ten-year livestock development plan to the governments within the region.
On COLDET, Oyeleye, said: “This initiative reflects our dedication to sustainable development within the region. By enabling communities to recognise their distinct assets and opportunities, we are fostering the capacity for enduring self-sufficiency. COLDET stands out due to its systematic method of community involvement and its emphasis on prioritization based on evidence.”
Expressing his enthusiasm for the collaboration, Chairman of the AGDF Steering Committee, Dr. Tunji Olugbodi, said: “The AGDF has launched the ARA2035 Agenda to rejuvenate our ancient community. This initiative aligns perfectly with DAWN’s COLDET project, making it an exemplary partnership. Together, we will illustrate how communities can spearhead their own development with the right resources and assistance.”
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Segun Balogun, who leads the COLDET Project, said: “This alliance signifies a crucial transformation in our community development strategy, as we move from conventional top-down approaches to a more sustainable bottom-up model. COLDET will empower local stakeholders to systematically assess their assets, prioritise their needs, and implement sustainable projects.”
The project will employ an integrated framework approach that combines systems practice with other methodologies, providing communities with a robust set of tools for self-assessment and development planning. The four-month pilot programme will feature detailed community mapping, resource assessments, stakeholder engagement, and the creation of strategic frameworks. The experiences gained from Ara will be instrumental in refining the toolkit before it is introduced to other communities in Southwest Nigeria. The initiative signifies a major advancement in reshaping Nigeria’s development model, addressing the enduring issues of misaligned priorities and unsustainable outcomes in community development efforts
“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.
Audu added that a memorandum of understanding (MoU) had already been drafted and shared with DICON, pending presidential approval.
As part of efforts to reposition the steel sector, the minister revealed plans to organize Nigeria’s inaugural steel summit, bringing 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 at 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.
Audu said the Federal Government is attracting foreign direct investments (FDI) into the steel industry, referencing President Tinubu’s visit to New Delhi in September 2023, where a commitment was made for the production of five million metric tons of steel in Nigeria.
“In addition, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity,” he said.
He further disclosed that the ministry was working on a five-10 year roadmap for the steel industry, incorporating best practices from other countries.
The minister acknowledged the steel sector’s challenges, stating that it had remained non-functional for 45 years. However, he expressed optimism that ongoing reforms would revive the industry.
“Our target is to produce 10 million metric tons 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,” he said.
During the tour of DICON factory at Kakuri Industrial Layout, the minister expressed satisfaction with the efforts of the corporation at making Nigeria self-sufficient in military hardware.
In his brief remarks, the Director-General of DICON, Maj Gen Aniedi Edet lamented that Nigeria spends millions of dollars on importation of military hardware and equipment.
He however expressed optimism that the partnership with the Ministry of Steel Development will lead to the success of the planned Military Industrial Complex that will produce sufficiently for Nigeria and export to other countries.
Maj Gen Edet also noted that, with current wars around the world, procurement of military hardware, software and equipment sometimes becomes a herculean task.
The minister during the visit paid a courtesy visit to former President Muhammadu Buhari at his Kaduna residence, while he also stopped over the Kaduna Government, where he explained his mission in Kaduna to Deputy Governor, Dr. Hadiza Balarabe who received him on behalf of Governor Uba Sani.
