The Federal Government has unveiled plans to manufacture military hardware at the Ajaokuta Steel Company as part of efforts to boost domestic production and strengthen Nigeria’s defence capabilities.
The Minister of Steel Development, Shuaibu Abubakar-Audu, disclosed this during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday. He revealed that the Ministry of Steel Development is partnering with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to execute the project.
Audu stated that a Memorandum of Understanding (MoU) had already been drafted and shared with DICON, pending presidential approval. He highlighted that one of President Bola Tinubu’s key objectives is the rehabilitation of the Ajaokuta Steel Company and the establishment of a military-industrial complex in Nigeria.
“We are working towards integrating military hardware production into the Ajaokuta complex as part of a broader plan to establish a military-industrial complex in Nigeria,” Audu said.
The minister also raised concerns over Nigeria’s heavy reliance on steel imports, which cost the country approximately $4 billion annually. He stressed the need for import substitution to ease pressure on foreign exchange reserves.
“This is a clear indication that we need to focus on domestic production to reduce our dependence on imports and stabilise the economy,” he added.
Audu described NSRMEA as a cornerstone of the Federal Government’s strategy to grow Nigeria’s economy to $1 trillion by 2030. He emphasised the importance of boosting steel production to meet national demand.
“For Nigeria to produce steel in the large quantities we desire, the exploration arm of the industry must operate at full capacity,” he said.
The minister commended NSRMEA for its performance, noting that previous assessments ranked it among the best-performing agencies under the ministry.
As part of efforts to reposition the steel sector, Audu announced plans to organise Nigeria’s first steel summit. The summit will bring together stakeholders to develop a comprehensive blueprint for the industry’s growth.
He also reported that the Metallurgical Industry Bill has passed its second reading at the House of Representatives. The bill, once passed and signed into law, will provide a regulatory framework for both private and corporate steel players, ensuring proper governance and development of the sector.
Highlighting the government’s efforts to attract foreign direct investment (FDI) into the steel industry, Audu referenced President Tinubu’s visit to New Delhi in September 2023, where a commitment was secured for the production of five million metric tonnes of steel in Nigeria.
“In addition, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State. These investments will significantly expand Nigeria’s steel production capacity,” Audu said.
The minister disclosed that the ministry is working on a 5-10-year roadmap for the steel industry, incorporating best practices from other countries.
He acknowledged the challenges facing the sector, noting that it had remained non-functional for 45 years. However, he expressed confidence that ongoing reforms would revive the industry.
“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,” Audu said.
