Nigeria imports $4 billion worth of steel annually, prompting calls for import substitution by Minister of Steel Development, Prince Shuaibu Abubakar Audu. Efforts to boost local steel production, including collaboration with the military and fostering foreign investments, are underway. Additionally, the DAWN Commission’s focus on livestock aims to enhance local production and economic participation in the Southwest region, addressing the significant financial outflow for red meat consumption.
The Nigerian steel industry is currently burdened by imports totaling $4 billion annually, according to Minister of Steel Development, Prince Shuaibu Abubakar Audu. He emphasized the necessity of import substitution to alleviate the strain on the country’s foreign exchange reserves. During a visit to the National Steel Raw Materials Exploration Agency (NSRMEA), Audu highlighted the agency’s pivotal role in the federal goal of elevating Nigeria’s economy to $1 trillion by 2030.
Audu praised NSRMEA for being among the best-performing agencies within the ministry and stressed that full operational capacity in exploration is essential for increasing steel production. Additionally, he revealed plans for collaboration with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) for military hardware production.
The Development Agenda for Western Nigeria (DAWN) Commission reported that the Southwest region incurs over N800 billion monthly on red meat. Dr. Seye Oyeleye, DAWN’s Director-General, noted the region slaughters around 10,000 cows daily, contributing significantly to the local economy but with a substantial reliance on external sources for livestock.
DAWN aims to shift the Southwest from being merely consumers to active participants in livestock production by utilizing its arable land and technology. Initiatives are underway to enhance production in meat, milk, and poultry, supported by a recently submitted ten-year livestock development plan to regional governments.
Oyeleye stated, “This initiative reflects our dedication to sustainable development within the region.” He discussed the Community-Led Development Toolkit (COLDET) project, emphasizing community engagement for long-term self-sufficiency. The project aims to foster a bottom-up development model, using comprehensive resource assessments and strategic frameworks to empower local communities.
Minister Audu reiterated the significance of reviving the Ajaokuta Steel Company as part of a broader military-industrial complex strategy and revealed ongoing efforts to attract foreign investments in steel. Notable commitments include a $300 million investment by Chinese company Galaxy in Ogun State.
The minister is also championing the Metallurgical Industry Bill, which if passed, will provide a regulatory framework for steel sector governance and development. With a target of producing 10 million metric tons of steel annually, Nigeria seeks to reduce its dependence on steel imports significantly.
In conclusion, Nigeria’s steel sector faces significant challenges due to heavy reliance on imports, amounting to $4 billion each year. The government is implementing measures to stimulate local production, including collaborations across ministries and foreign investments. The DAWN Commission’s initiatives further aim to transform the livestock sector in the Southwest, supporting local economies. Overall, the focus is on sustainable development and self-sufficiency in both the steel and livestock industries, with an ambitious target to enhance production capabilities and reduce imports.
Original Source: economicconfidential.com
