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Home Markets Commodities

Nigeria’s $1.5 billion steel plant set to produce 1 million MT of steel annually

Omokolade AjayibyOmokolade Ajayi
2 years ago
in Commodities
Power: Mambilla Power Project not prioritised by Ministry of Power for 2021 Budget - Finance Minister

Mrs Ahmed Zainab

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The Federal government of Nigeria has disclosed that it is expecting an annual output of one million metric tonnes of steel from its $1.5 billion steel plant in Kaduna.

This was disclosed by the Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed while inspecting the steel plant facility at the African Natural Resouces and Mines Limited in Kaduna.

READ: Why Ajaokuta Cannot Make Steel

READ: CBN restricts forex for milk import to Nestle, Chi, Friesland, 3 others

According to The Punch, Mrs Zainab Ahmed during the inspection of the facility said that the $1.5 billion steel plant which is now nearing completion, would produce one million metric tonnes of steel annually. She emphasized that the facility is critical to the nation as it is tactical to the looming steel revolution in Nigeria.

READ: Maize Scarcity: Premier Feeds, Crown Flour, 2 others import 262,000MT of Maize

What you should know

The $1.5 billion steel plant built by African Resources and Mines Limited, a subsidiary of African Industries Group (AIG) is at an advanced stage of completion.

The plant which is billed to commence the first phase of production in the mining of Iron ore, and production of Direct Reduced Iron in a matter of months is expected to produce one million metric tonnes of steel annually.

(READ MORE:FG to provide support to Aviation investors)

Why this matters

This development is expected to resuscitate Nigeria’s steel industry which has been lifeless for a while, and help put an end to the importation of steel in Nigeria. This will also reduce the pressure on the Nation’s foreign reserve, and bolster the foreign reserve of the country.

It is expected to boost domestic steel production and attract foreign investors’ participation in the industry, especially auto producers around the world.

However, the facility will create employment opportunities for Nigerians both directly and directly and indirectly.

READ: House of Representatives oppose concession of Ajaokuta Steel Plant

What they are saying

Alok Gupta, the Group Managing Director of AIG, said the firm would be mining iron ore to produce direct reduced iron, which would enable the company to produce higher-grade steel more efficiently.

He explained that the investment by the company in the Nation’s steel industry will dramatically increase domestic production, and this will have multiple effects on the Nigerian economy.

READ: CBN moves to reduce cassava derivatives import worth $600 million  

READ MORE:FG slashes 2020 budget by N318 billion, sends to NASS

The Minister of Finance emphasized that the recent investment in the steel industry by AIG which is about to yield gains both for the company and the economy will attract the auto industries of the world to come into Nigeria and produce cars in Nigeria for Nigerians, and other countries in West Africa.

READ: Kachikwu advocates refineries repair as petrol landing cost reaches N180 per litre

Bottomline

The investment of AIG in the steel industry is expected to drive the country towards steel independence, and pave the way for Nigeria’s steel revolution and the development of the automobile industry in the nation.

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Tags: African Industries Group (AIG)African Natural Resouces and Mines LimitedBusiness NewsMrs Zainab Shamsuna AhmedNigeria News

Comments 1

  1. Anonymous says:
    October 19, 2020 at 9:48 pm

    Nigeria, the country of “set to”, “will be”, “about to”, “is billed to”, “is expecting to”. Nothing ever done.

    Reply

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