2023.
According to the United Nations COMTRADE database, shows that in 2023, Nigeria imported $271.96 million worth of steel products, a significant portion of its total import bill, Nigeria’s steel import bill remains high, underscoring its dependence on international suppliers for industrial and construction materials.
The Ajaokuta plant was designed to produce 1.3 million tonnes of steel annually in its first phase, expanding to 5.2 million tonnes in subsequent phases. It was expected to have significant economic benefits across various sectors and provide thousands of direct and indirect jobs. However, despite investments of $6.5 billion, there has been little progress. Data from the Federal Ministry of Mines and Steel Development and the National Bureau of Statistics detail these investments over the years, with no substantial impact on steel production.
The Head of Department of Geology, University of Ibadan, Prof. Gbenga Okunlola, highlights Nigeria’s potential for steel self-sufficiency. “And not only can we stop importation in Nigeria, we can even supply and export to other West African countries. The resource of the iron ores that we have in Nigeria is huge, we have no less than about 10 iron ore deposits around one location that are world class, not just Itako.
He further said: “When Ajaokuta steel was non-functional, other steel companies were coming up even though their production may be low. So for us to say we don’t have the capacity is not enough. But of course, we are living in a global world where we need to integrate technologies and all that. Professor Agajo from the Federal University of Technology, Minna, underscores the urgent need for steel industry revitalization to support Nigeria’s industrialization.
He said: “The problem we have is the government’s commitment to develop the steel sector. We had an Ajaokuta steel company that was actually up and doing close to 90 per cent completion but we squandered that opportunity when we refused to complete it. “That money will be saved and probably be used to take care of other sectors of the economy. But if you complain that you don’t have enough and out of what you don’t have enough you are still spending it on importation, the country goes poorer.
“So the government needs to revive these industries to make sure that these processes are running and the country will make gains, earn more money, earn more foreign exchange and our Naira will get its value again.” The government must prioritise substantial investments and strategic partnerships to realise the potential of Nigeria’s steel industry and ensure sustainable industrial development.Before flagging, please keep in mind that Disqus does not moderate communities. Your username will be shown to the moderator, so you should only flag this comment for one of the reasons listed above.