Key points
- Niger State has allocated 500 hectares to Abuja Steel Mills for a major solar farm and industrial park.
- The project aims to power steel production with renewable energy and reduce reliance on the national grid.
- The state plans an additional 200,000 hectares for industrial development linked to the AKK gas pipeline.
- Officials say the investment will boost local steel production, jobs and Nigeria’s industrialisation drive.
Main story
The Niger State Government has allocated 500 hectares of land to Abuja Steel Mills Limited, a subsidiary of African Industries Group (AIG), for the development of a large-scale solar farm and industrial park aimed at transforming steel production through renewable energy.
The project will combine a major steel manufacturing complex with a dedicated solar power plant, reducing dependence on Nigeria’s unreliable electricity grid and expensive diesel-powered generation.
Chairman of African Industries Group, Raj Gupta, described the land allocation as a landmark milestone, saying the proposed solar facility could become the largest in Nigeria and one of the biggest dedicated to supporting steel production in sub-Saharan Africa.
The investment forms part of Governor Mohammed Umar Bago’s broader strategy to position Niger State as a major industrial hub.
According to the governor, the state plans to designate an additional 200,000 hectares of industrial land stretching toward Kaduna State, leveraging the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, abundant solar resources and hydropower assets, including the Kainji, Jebba, Shiroro and Zungeru dams.
Minister of Steel Development, Shuaibu Audu, commended African Industries for its growth into one of West Africa’s largest steel producers, employing about 10,000 people across its operations.
He said investments in steel manufacturing would play a critical role in the Federal Government’s target of building a $1 trillion economy by 2030.
Minister of State for Industry, Trade and Investment, John Enoh, said large private-sector investments would help reduce Nigeria’s dependence on imported steel while creating jobs and expanding domestic manufacturing capacity.
Founded more than five decades ago, African Industries Group operates over 30 manufacturing plants across sectors including steel, mining, chemicals, glass and real estate.
Its subsidiary, Abuja Steel Mills, is expanding into utility-scale solar power as part of efforts to improve energy reliability and lower production costs through cleaner energy sources.
The issues
Manufacturers in Nigeria continue to face high operating costs due to unreliable electricity supply and dependence on diesel generators. Integrating renewable energy into industrial production is increasingly seen as a way to improve competitiveness, lower costs and reduce emissions.
What’s being said
“The solar installation could become the largest in Nigeria and potentially the biggest supporting a steel operation in sub-Saharan Africa.” — Raj Gupta, Chairman, African Industries Group
What’s next
Construction is expected to begin after project planning and regulatory processes are completed, while the state moves ahead with plans to develop a broader industrial corridor supported by gas, hydropower and renewable energy infrastructure.
Bottom line
The project represents one of Nigeria’s most ambitious efforts to combine heavy industry with large-scale renewable energy, potentially setting a new benchmark for industrial development and clean manufacturing in Africa.
