The country is moving to diversify its economy as part of the current administration’s “Renewed Hope” program. The Minister assured the delegation from China’s Inner Galaxy Steel Company Limited of the Federal Government’s support in creating an enabling environment and providing other fiscal incentives for their sustainable operation in Nigeria, adding that the Ministry would review the company’s proposal and engage the relevant government authorities for concessional benefits within the current operating framework to facilitate the proposed foreign direct investment.
In his speech, Dr Isokpunwu welcomed the Chinese company’s new investment interest, noting that the Minister is keen to lead the President’s steel revival efforts.
Nigeria imports $4 billion worth of steel every year
According to the National Steel Raw Materials Exploration Agency (NSRMEA), steel consumption in Nigeria is estimated at around 10 million metric tons per year. However, national production stands at 2.2 million metric tons, leaving a large proportion of needs unmet.
Nigeria currently has 74 steel mills and manufacturers, but only 40 are in operation. Around 70% of the country’s needs are met by imports. Prince Audu also pointed out that Nigeria spends almost $4 billion a year on these imports.The Chinese investment will support the Nigerian government’s efforts to reduce spending on steel imports and diversify its economy. Last month, it signed partnerships with Russian companies. These agreements concern the rehabilitation, completion and operation of the Ajaokuta Steel Company Limited (ASCL), as well as the management of the National Iron Ore Mining Company (NIOMCO), a state-owned company which exploits an iron ore deposit in Kogi State.
Inner Galaxy Group Chairman Mr. Li noted that the investment is expected to increase the country’s steel production, reduce Nigeria’s dependence on imported specialty steel products and conserve scarce foreign exchange with direct and indirect job creation opportunities estimated at around 10,000 with further multiplier effects in the economy.
