The Federal Government is making plans to begin manufacturing military hardware at the Ajaokuta Steel Company. The Minister of Steel Development, Shuaibu Abubakar-Audu, revealed this during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday.
Audu stated that the Ministry of Steel Development is partnering with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military equipment for the Nigerian Armed Forces and other security agencies. He added that a Memorandum of Understanding (MoU) had already been drafted and shared with DICON, awaiting presidential approval.
“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.
The minister also pointed out that Nigeria currently spends about $4 billion annually on steel imports. He noted that this puts a strain on the country’s foreign exchange, making it necessary to focus on local production.
Audu described the National Steel Raw Materials Exploration Agency as an essential part of the government’s strategy to expand Nigeria’s economy, aiming for a $1 trillion GDP by 2030. He stated that for Nigeria to meet its steel production goals, the exploration sector must operate at full capacity.
He also revealed plans to organize Nigeria’s first-ever steel summit, bringing together industry experts and stakeholders to develop a clear roadmap for the sector’s future.
In addition, the minister noted the progress of the Metallurgical Industry Bill, which has already passed its second reading at the House of Representatives. Once passed, the bill will provide a proper regulatory framework for private and corporate steel producers, ensuring the sector is well-managed and developed.
Audu further stated that the government is working to attract foreign investments into the steel industry. He referenced President Tinubu’s visit to India in 2023, where an agreement was made for Nigeria to produce five million metric tonnes of steel.
“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.
The minister noted that despite the steel sector remaining inactive for over four decades, the government is committed to revitalizing it. He expressed confidence that with ongoing reforms and strategic plans, Nigeria will achieve its target of producing 10 million metric tonnes of steel annually.
“Our target is to produce 10 million metric tonnes 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.
He also disclosed that the ministry is working on a long-term roadmap for the steel industry, adopting strategies from successful steel-producing nations.
