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Tag: Steel

  • Importation of steel products drains FX by 4bn US dollars yearly – FG

    Importation of steel products drains FX by 4bn US dollars yearly – FG

    Minister of Steel Development, Prince Shuaibu Abubakar, has disclosed that imported steel products drain Nigeria’s foreign exchange (FX) to the tune of over 4 billion US dollars per annum.

    TheNewsGuru.com (TNG) reports Abubakar made this disclosure at a news conference on Thursday in Abuja, ahead of Nigeria’s first National Steel Summit to rebuild and unlock the country’s steel potential.

    The summit is expected to position Nigeria as a leading steel hub in Sub-Saharan Africa and significantly boost the national Gross Domestic Product (GDP).

    The summit with the theme `Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness` is scheduled to hold from July 16 to 17 in Abuja.

    Abubakar said the summit would provide a platform for stakeholders in the sector to appraise the current status of the industry and explore investment opportunities.

    He said they would also identify policy and infrastructure gaps and adopt a common roadmap for the revival and sustainable growth of Nigeria’s steel sector.

    According to him, stakeholders will have a common platform to discuss areas of mutual collaboration, especially in market promotion and shared infrastructure to boost competitive production.

    He said that the administration of President Bola Tinubu was determined to ensure the emergence of a virile steel industry in Nigeria, especially given the country’s abundant raw materials available in commercial quantities nationwide.

    He explained that the government’s mandate includes repositioning the sector to reduce heavy imports by promoting local processing, as well as strengthening the industry’s presence in local and international markets.

    The minister added that the summit would further guide the government on its mandate to set and monitor standards for steel products to prevent structural failures in Nigeria’s construction sector.

    “The present Renewed Hope Administration of President Bola Tinubu is already pushing the right buttons to ensure the emergence of a virile steel industry in Nigeria along these key mandate instructions

    “That the utilisation of the abundant Steel Raw Materials in Nigeria for the  substitution of imported Steel products which has been draining our  foreign exchange to the tune of over 4Billion US dollars per annum.

    “That we enthrone a regulatory regime that would ensure sustainable Steel and Non-Ferrous Metals production in Nigeria for both local and international markets.

    “That we set and monitor quality standards for local and foreign steel products to eradicate structural failures in different construction projects in Nigeria.

    “This will generate massive employment for our teeming youths and promote technology transfer for Nigeria’s economic development, “ he said.

    According to him, in the past 20 months, the Tinubu administration is already recording notable milestones, vigor in the resuscitation of the assets such as the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company.

    He explained that the government has awarded a contract for the technical and financial audit of the ASLC, which has already commenced.

    He said the report was expected to determine the exact current state of the Ajaokuta company and the resources required to revive it after more than 20 years in a comatose state.

    Abubakar noted that the Tinubu`s administration was implementing economic policies which was renewing investors’ confidence in the sector.

    He said that this has led to the Stellar Steel Company Limited committing investment of 400Million US dollars for the establishment of Steel facility for the production of hot rolled coils/plates.

    Similarly, he said, the Orbit Fabrication/Galvanising Works Limited had unveiled a 50,000tonnes galvanising plant valued at about $100 million amongst other new investments into the sector.

    According to the minister, the technical sessions and panel discussions during the event will examine critical areas of the industry from diverse perspectives, including requirements to resuscitation  of the country’s legacy steel projects.

    The minister stated that repositioning the steel industry would have a multiplier effect on Nigeria’s economy, benefiting sectors such as construction, automobile and  manufacturing among others.

  • How Nigeria imports $8bn steel yearly while Ajaokuta Steel Company rots away

    How Nigeria imports $8bn steel yearly while Ajaokuta Steel Company rots away

    The Minister of Steel Development, Mr Shuaib Abubakar, says Nigeria spends $8 billion to import steel into the country annually, saying it has become necessary for the Ajaokuta steel company to work.

    Abubakar disclosed this during an interactive session with the House of Representatives Committee on Steel Development in Abuja on Thursday.

    According to him, the revival of Ajaokuta steel will cost money, adding that he has written a 10-year document for the revival of the company, which he said would be presented to President Bola Tinubu soon.

    The Minister said it was in his own interest for Ajaokuta Steel to work, adding that he was from Kogi State and must push for such interest.

    He said that the Federal Government paid $500 million dollars to terminate the concessional agreement with Ajaokuta, adding that the ministry was working very hard to find a solution for Ajaokuta Steel.

    “It is a problem that has persisted for 45 years. We have gone to China to come and invest in the steel company, including setting up a new plant, and we have gone to seek financing,” Abubakar said.

    He said that the challenges had changed as new technology had come up, and with innovation and discussion around it, but it had not been finalized.

    “Funding is a big challenge to the ministry of steel development. The steel industry will be the bedrock of industrialization if we have proper funding.

    “I am still at a stage where I need to find a solution for the Ajaokuta steel company,” he said.

    On the $2 billion being requested to revive the moribund steel company, the Minister said it was just a preliminary calculation, adding that the figure might not be up to that.

    According to him, this is an estimate that may not be accurate at the last decimal point.

    “It is just a process that will allow us to arrive at the right destination.

    “The president has asked me to find a solution to Ajaokuta, so the figure will change pending the outcome of the technical audit.

    “It’s clear to Nigeria that for this to happen, we need funding and all the help we can get from the two chambers; this is why we need it. I need all your support to make this a reality,” Abubakar said.

    Rep. Zainab Gimba, the Chairman of the House Committee on Steel Development, urged the ministry to provide it with all the procurement processes and other responses demanded by the committee.

    The committee said that Ajaokuta had remained a nightmare to many, adding that now that the minister had accepted to supervise it, Nigeria expects more from him.

  • Steel: Tinubu receives brief on $10bn investment prospects

    Steel: Tinubu receives brief on $10bn investment prospects

    President Bola Tinubu on Thursday held a meeting with the Minister of Steel Development, Prince Shuaibu Audu, and the Minister of Defence, Alhaji Mohammed Badaru, during which he received briefing on investment prospects in the steel sector.

    The President emphasised that a revitalised steel development industry was both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria’s massive pool of talented entrepreneurs.

    “We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams.

    “New investments in steel production will spur the growth of so many sectors. Industrialisation will be a reality in our country with sufficient energy and steel.

    “Nigerian steel will undergird our economy and other economies in our region in future years.

    “I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent,” the President stated.

    The Ministers informed the President of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as start the production of military hardware at Ajaokuta Steel Plant.

    A delegation led by the Minister of Defence and the Minister of Steel Development had visited Hefei and Guangzhou regions of China to hold business talks with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing; the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior executives of the Luan Steel Holding Group.

    The Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.

    The Minister of Steel Development briefed the President, following his approval to restart the Light Steel Mill (LSM) section of Ajaokuta Steel Complex for the production of iron rods, on the progress made on restarting the section, which will cost N35 billion at the first stage.

    The Minister said several financial institutions had already provided offer letters for this transaction and that the project was expected to create up to 5,000 direct and indirect jobs for Nigerians.

    The Minister of Steel Development also informed the President of discussions with the representatives of Jindal Steel Group of India.

    Jindal Steel Group had indicated interest in investing up to 5 billion dollars in a new steel plant in Nigeria on the sidelines of the G20 meeting in New Delhi, India, in September 2023, and is now considering either acquiring existing plants or setting up greenfield plants.

    According to the Minister, on completion of these deals, about 10 billion dollars worth of investments in both new and existing steel plants in Nigeria will be established.

    He said these investments will create over 500,000 direct and indirect jobs in the steel industry in line with the President’s massive job creation through industrialisation.

  • Speaker Dogara: Nigeria’s industrialisation unattainable without…

    Speaker Dogara: Nigeria’s industrialisation unattainable without…

    Speaker Yakubu Dogara has, again, called on the executive to give priority to steel development in Nigeria, saying it is the bedrock of the development of the country.

    He argued that the country keeps losing revenue through importation of steel, even more that the government is focused on implementing projects that are dependent on steel such as the Mambilla power project and the Second Niger bridge among others.

    Hon Dogara, who was speaking at the Open NASS event ongoing in the National Assembly, also harped on the need for provision of mechanised tools and subsidies to farmers for agricultural revolution to work.

    “Point to any nation out there that is industrialised that doesn’t have a robust steel and aluminum sector,” he stated, while adding, “As we edge towards the Mambilla Power Projects, we are utilising millions in tonnes of steel, and if we don’t have a robust steel sector, all the money would go to China for instance where we will be importing this steel from.

    “The second Niger bridge is there, it’s going to also consume millions of tonnes in steel. If care is not taken, China will also earn all the money. So what are we doing as a government to ensure this doesn’t happen?

    “Without the aluminum and steel sector, there cannot be industrialisation in Nigeria. The President of Ghana was speaking recently before an enlightened audience and he spoke of the need for Ghana to have a steel plant and they are starting soon. So if care is not taken, Nigeria, the giant of Africa will be importing steel from Ghana.”

    Speaking on how to revolutionalise the agricultural sector for the benefit of both the farmers and the country, the Speaker said, “To be very frank, if we don’t talk of mechanisation and subsidies for farmers, any talk about revolution in agriculture without mechanisation and subsidy is just rendering cheap talk. It will not be competitive and it will not work. I’m yet to see any developed country be it in America or Europe that doesn’t subsidise farming, and I’m yet to see any country that has completely mechanised its agriculture that doesn’t have a competitive edge against other nations.

    “What are we doing in terms of mechanisation of agriculture in Nigeria and giving subsidy to farmers? Because virtually every practice that was there before is till there, you are a farmer and you are looking for loan, forget about anchor borrowers, you might not get the loan. And when you raise your produce, for instance I have an orchard which was done about fifteen years ago, they come to your farm and they want to buy your mango for thirty or fifty Naira, yet they turn around and sell the same mango for a hundred and fifty Naira. So the problem has always been these middlemen, and it is more profitable in the agricultural value chain to be a middle man, than to be a farmer. So how do we encourage the farmers? So that we grow what we eat, and we eat what we grow?”

    He also identified high interest rates on loans from Commercial Banks at the current high interest rate as a poverty trap that discourage entrepreneurship and encourage the movement of wealth from the citizens to the corporations, noting that this does not propel growth of the economy as it’s actually those who employ between ten to thirty people that are really the engine growth in any nation.