Imported steel products drain over $4bn foreign exchange annually — Minister

•Says FG targets $10bn direct investment in steel industry by 2030

By Gabriel Ewepu

ABUJA — THE Minister of Steel Development, Prince Shuaibu Audu, weekend, disclosed that imported steel products drained over $4 billion foreign exchange annually.

He disclosed this at the 2025 engineering conference, annual general meeting, award night, and inductions ceremony organized by the Nigerian Society of Engineers, NSE, Bwari branch, with the themed ‘’Building a Sustainable Steel Industry in Nigeria: The Role of Consistent Policy and Institutional Stability’.

The minister said the Federal Government had taken a significant step toward unlocking Nigeria’s economic potential by targeting $10 billion in direct investment in the steel sector by 2030.

According to him, despite the challenges facing the economy, the federal government remains committed to developing all sectors and creating job opportunities for millions of Nigerians.

He stated further that the President had made notable efforts to revive the Ajaokuta Steel Company, with a view to transforming Nigeria’s mining and steel industries, thereby boosting manufacturing and driving economic growth.

He said: “Without a thriving steel industry, no modern economy can achieve inclusive, large-scale and sustainable growth. Steel is universally acknowledged as the backbone of industrialisation. It supports critical sectors such as construction, energy, manufacturing, transportation and defense.

“The historical challenges in developing the steel sector, the administration of President Bola Tinubu has shown a clear resolve to address the longstanding issues plaguing the industry, with imported steel products draining over $4 billion in foreign exchange annually.

“This commitment is evident in the creation of the ministry of steel development, designed to give focussed attention to this strategic sector, which is expected to become the bedrock of Nigeria’s industrialisation.

“This decision is anchored on several key objectives: Utilizing Nigeria’s abundant steel raw materials to substitute imported steel products.”

He stressed that the Nigerian vision of a strong and self-reliant steel sector dated back to 1958, culminating in the establishment of the Ajaokuta Steel Company and the Delta Steel Plan.

However, he acknowledged that despite efforts spanning over four decades, Nigeria’s local steel production was still largely dependent on the recycling of scrap materials, producing mostly long products by private operators.

Meanwhile, the President, Nigerian Society of Engineers, Engr. Margaret Oguntala, represented by Engr Dayyabs Tijani, commended the Bwari branch for its vibrancy, consistency and commitment to the ideals of the society.

Oguntala commended the executive committee and all members of the branch for their tireless efforts in capacity building, noting that their continuous investment in professional development was both laudable and essential for Nigeria’s sustainable development.

She stated further that this year’s conference theme was timely and highly relevant, emphasising the critical role of a stable policy environment in building a resilient steel industry.

The guest speaker and senior lecturer, Department of Mechanical Engineering, Nile University, Engr Temitayo Ogedengbe, emphasised the urgent need for more research and innovation to build a stronger steel industry in Nigeria.

Ogedengbe noted that Egypt leads Africa with over 10 million metric tonnes of steel production annually, followed by South Africa, Algeria, and Morocco.

According to him, Nigeria currently ranks fourth with less than 1 million metric tonnes, just a third of Egypt’s output in 2021.

Recent data from the World Steel Association indicated that Libya, previously not a major player, has overtaken Nigeria, now ranking fourth in Africa. Ogedengbe lamented the dormant state of the Ajaokuta Steel Company, describing it as a vast landmass lying idle.

While calling for urgent action to operationalise the facility, he said: “If we commit to these goals, the steel industry will thrive. A new Nigeria, built on the strength of a robust steel sector is not just possible, it is inevitable, if we choose to build it together.’’

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