Nigeria spends about $4 billion annually on steel imports, prompting calls for import substitution. Minister Audu announced plans to enhance domestic steel production and establish military hardware manufacturing through collaborations. Separately, the Southwest region’s red meat consumption highlights a demand exceeding N800 billion monthly, pointing to opportunities for local livestock production. Both sectors reveal significant initiatives toward economic self-sufficiency and development.
Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, revealed the country spends approximately $4 billion annually on steel imports. This significant expenditure underscores the urgent need for import substitution to alleviate pressure on foreign exchange reserves. During a recent visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna, Audu emphasized the agency’s vital role in the governmental objective of growing Nigeria’s economy to $1 trillion by 2030. He advocated for maximizing the agency’s exploration capabilities to increase domestic steel production.
Moreover, Audu commended the effective performance of the NSRMEA, which has been recognized as one of the leading agencies in the steel sector under his ministry’s oversight. He also detailed plans for collaboration with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware, which indicates a strategic expansion of Nigeria’s industrial ambitions beyond just civil needs.
In a separate matter, the Development Agenda for Western Nigeria (DAWN) Commission reported that the Southwest region allocates over N800 billion monthly for red meat consumption. Dr. Seye Oyeleye, the Director-General of DAWN, noted the region slaughters approximately 10,000 cows daily, with Lagos accounting for nearly 7,000. This high expenditure highlights the vast potential for local livestock production and food security within the region.
Dr. Oyeleye pointed out the misspent opportunity for Southwest Nigeria, currently reliant on external sources for 99% of its livestock needs. He advocated for transforming the Southwest from consumers to producers, leveraging its arable land and technology. Moreover, DAWN has proposed a ten-year livestock development plan for regional governments to enhance meat, milk, and poultry production, thereby stimulating the local economy.
The COLDET project aims to facilitate sustainable local development by emphasizing community involvement and evidence-based prioritization. Dr. Tunji Olugbodi, Chairman of the AGDF Steering Committee, expressed enthusiasm for this collaborative initiative, aligning with DAWN’s goals for sustained community empowerment and development.
Furthermore, Minister Audu stressed President Bola Tinubu’s commitment to the rehabilitation of Ajaokuta Steel Company, alongside plans to integrate military hardware production. An MoU concerning this initiative has been drafted, awaiting presidential approval. Additionally, the inaugural steel summit will convene industry stakeholders to strategize on enhancing the sector’s growth while the Metallurgical Industry Bill progresses through legislative review.
Audu revealed ongoing efforts to attract foreign direct investment into the steel industry, referencing a commitment made during President Tinubu’s trip to New Delhi for the production of five million metric tons of steel. Moreover, a Chinese investment of $300 million into a new steel plant in Ogun State is anticipated to bolster local production capacity significantly.
Despite historical challenges, including a 45-year period of industry underperformance, Audu is optimistic about the reforms set in place to revitalize Nigeria’s steel sector, targeting an annual production capacity of 10 million metric tons within the next five years. His tour of the DICON factory reinforced aspirations for military equipment self-sufficiency, reflecting broader national interests in defense modernization.
The article outlines significant developments in Nigeria’s steel industry, revealing that the nation incurs a substantial $4 billion in steel imports annually. Minister Audu’s remarks highlight ongoing efforts to enhance domestic steel production and military capabilities through strategic collaborations and legislative measures. Concurrently, the DAWN Commission’s insights into livestock consumption reflect untapped potential for local agricultural production. Overall, both sectors indicate promising trajectories aimed at elevating Nigeria’s economic self-sufficiency.
Original Source: economicconfidential.com
