Steel Sector Sees $500m FDI Boost Following Reforms, Says Minister

About $500m in foreign direct investment (FDI) has flowed into Nigeria’s steel sector over the past 20 months, the Minister of Steel Development, Prince Abubakar Audu, has revealed.

Audu disclosed this on Thursday in Abuja while briefing journalists ahead of the inaugural National Steel Summit 2025, themed “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness”, scheduled to hold from July 16 to 17.

He said the investments mark a significant vote of confidence in President Tinubu’s industrialisation blueprint, which seeks to reduce Nigeria’s annual $4bn foreign exchange loss to imported steel products.

According to the minister, “Through the Renewed Hope Agenda of Mr President, we have so far attracted more than $500m in FDI into Nigeria’s steel and metals space within the last 20 months. This is unprecedented in the history of the sector.”

He cited two major investments as indicators of renewed global interest in Nigeria’s steel industry.

“One is the $400m investment by Stellar Steel Company Limited, a subsidiary of Inner Galaxy Group, which is building a facility dedicated to the production of hot rolled coils and steel plates,” he said.

“Another is the recent commissioning of a $100m galvanising plant with a 50,000-tonne capacity by Orbit Fabrication and Galvanising Works Limited, a member of the African Industries Group.”

The minister further assured Nigerians that the Ajaokuta Steel Plant, often seen as the bedrock of Nigeria’s industrial dream, will partially begin operation before the end of President Tinubu’s first term in office.

“Before the expiration of this administration’s first term, we are confident that the first section of the Ajaokuta Steel Plant will be operational,” he said.

He noted that beyond attracting investment, the Renewed Hope Agenda also prioritises building a self-reliant steel industry by harnessing the country’s vast iron ore and raw materials.

“Our mandate includes reducing Nigeria’s dependence on imported steel by developing a value chain that supports local production, technology transfer, and job creation for our teeming youths,” Audu stated.

He added that the ministry is working to establish a strong regulatory framework to ensure quality control, eliminate structural failures in construction, and promote competitiveness in international markets.

Speaking on the upcoming summit, the minister said the event, which will be declared open by President Bola Tinubu, will bring together stakeholders across the public and private sectors to develop a collective strategy for reviving the steel sector.

“The Summit will appraise the current status of the industry, explore fresh investment opportunities, and identify policy and infrastructural gaps,” he said. “The goal is to drive a consensus forward that will ensure the steel sector becomes a sustainable driver of Nigeria’s economic development.”

He explained that technical sessions and panel discussions will dissect critical challenges and solutions, ranging from funding and regulation to raw material beneficiation and private-sector participation.

Audu extended an open invitation to stakeholders across the value chain, promising participants a robust opportunity for business networking, deal closures, and mutual partnerships.

“This Summit is not about rhetoric,” he said. “It is about taking critical, collaborative, and progressive action that will reposition Nigeria as a major player in the global steel industry.”