By Fatima Saka
In a bid to restore Nigeria’s steel sector, the Honourable Minister of Steel Development, Prince Shuaib Audu, has engaged development partners and international donor agencies to secure funding and technical support for the revival of key steel assets, particularly the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO).
Speaking at a meeting with development partners and international donor agencies on Tuesday in Abuja, the Minister emphasized the capital-intensive nature of the steel sector and the urgent need for investment to upgrade infrastructure and operational capacity.
He noted that revitalizing the industry would boost local production, reduce dependence on imports, and generate foreign exchange.
Highlighting the financial constraints hindering progress, Prince Audu stated: “We are facing significant funding challenges, but the President has mandated us to think outside the box and explore innovative solutions. We have approached the Budget Office and the National Assembly for increased funding beyond the initial budget proposal. In addition, we are actively engaging donor agencies to bridge the gap. Steel production requires substantial investment, whether in raw material processing, infrastructure like deep-sea ports, or rehabilitating existing steel plants.”
He explained that even smaller-scale rehabilitation efforts, such as revamping a light-section mill for iron rod production, demand substantial resources. The government is, therefore, leveraging international partnerships and signing MoUs to secure the necessary funding.
Addressing the 2025 budget for the steel sector, the Minister described it as a strategic blueprint to transform the industry into a globally competitive and sustainable driver of Nigeria’s economy.
“While our capital budget for 2025 outlines an ambitious roadmap, we recognize the financial hurdles ahead. Transforming a capital-intensive industry like steel requires significant investment, beyond what the government alone can provide. This is why we seek the partnership of international development agencies, whose technical expertise, financial resources, and global experience are indispensable.”
He further emphasized that donor support is critical to modernizing steel infrastructure, enhancing workforce skills, and strengthening regulatory frameworks.
“Your support is not just desirable, it is essential. Together, we can create a legacy of sustainable development, industrial innovation, and job creation that will benefit future generations. By investing in key steel assets, fostering capacity development, and driving policy reforms, we will reduce Nigeria’s reliance on imports and establish the country as an industrial leader in Africa.
“By supporting the revitalization of key steel assets and infrastructure, investing in capacity development, and championing regulatory and trade reforms, you will be contributing to a cause that is not only about industrial progress, it is about national rejuvenation. Your commitment will help unlock the full potential of Nigeria’s steel sector, reducing our reliance on imports, fostering local innovation, and positioning our nation as a beacon of industrial excellence in Africa and beyond.
“In this spirit of shared purpose, I request your technical assistance, financial investments, and strategic guidance. Together, let us build a future where Nigeria’s steel industry is a dynamic engine of growth, a generator of jobs, and a cornerstone of our economic diversification.
“Ladies and gentlemen, the Ministry of Steel Development stands at the threshold of an industrial renaissance a renaissance that promises to reshape our nation’s economic landscape. The vision laid out in our 2025 capital budget is both ambitious and necessary, encompassing the revitalization of legacy assets, capacity development, policy reforms, and the promotion of domestic and international trade. Yet, as we embark on this journey, we recognize that our success hinges on the strength of our partnerships. I enjoin you to join us in this journey. Your support today will pave the way for a thriving steel sector that not only fuels Nigeria’s industrial engine but also builds a better, more prosperous future for all.”
In responses, several international development partners expressed their willingness to collaborate with the Nigerian government:
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The Australian High Commission in Nigeria assured support, particularly in technical assistance, citing synergies between Australia and Nigeria in steel production.
Dr. Osuji Otu, Nigeria Country Representative for UNIDO, acknowledged the steel sector’s vital role in industrial development and revealed that UNIDO is preparing to launch a 2024–2028 country partnership program.
Ms. Elsie Altafua, UNDP Country Representative, reiterated UNDP’s commitment to providing technical assistance, aligning with Nigeria’s five-year strategic plan for steel development.
Ministry’s Strategic Objectives
Earlier, Dr. Chris Osa Isokpunwu, Permanent Secretary of the Federal Ministry of Steel Development, stressed the importance of a collaborative approach in ensuring sustainable development.
“Our mission is to enhance Nigeria’s mineral capacity, promote the use of local materials, and create jobs. Currently, about 90% of Nigeria’s steel needs are met through imports. Our goal is to develop a self-sufficient and competitive industry that meets local demand and contributes to national economic growth.”
He outlined key strategic objectives:
1. Developing a sustainable steel industry that ensures long-term viability.
2. Promoting industrialization to strengthen domestic production and reduce import dependency.
3. Creating job opportunities through increased industrial activity.
4. Fostering regional economic development by ensuring that steel plants across Nigeria contribute to local economies.
Distinct News reports that the Ministry of Steel Development remains committed to restoring Nigeria’s steel industry as a pillar of economic diversification and industrial growth. With strong partnerships and international support, the sector has the potential to become a driving force for job creation and national prosperity.
