Nigeria imports $3.3 billion worth of steel while Ajaokuta steel plant lies fallow
Recent findings have shown that out of the 17 million tonnes of steel that Nigeria needs yearly, it can only produce 2.2 million tonnes locally. This deficit has invariable left the country with no choice than importing the remaining balance.
As a result of this deficit, Nigeria spends a whooping $3.3 billion to import steel and other associated derivatives annually.
The Minister of State, Mines and Steel, Abubakar Bwari made this known at the 16th Edition of Mines and Money, in London.
This reality is quite unsettling given the fact that Nigeria has abundance of iron ore, the raw material for steel, and a steel manufacturing plant in Ajaokuta that has been moribund for many years. The massive plant has been touted as having the capacity to produce the entire 17 million tonnes of steel products needed by the country and even more for export.
Mr Bwari pointed out that the government has been working towards salvaging the situation by offering contracts worth N15billion to firms who have shown interest in exploration of priority minerals like gold, lead, zinc, iron ore, and rare earth metals.
“We recently launched a roadmap for development of industrial minerals, aimed at making the country self-sufficient in construction firm, and free up opportunities for quicklime for water treatment,” he said.
The gains of reviving the comatose Ajaokuta steel mill will not just provide the country with the steel products it needs, but it will also help it retain the $3.3 billion it spends on foreign manufacturers.
