With the prospect of one million metric tons of steel per day production, Nigeria may end importation of the product by 2025, Minister of Finance, Budget and National Planning Mrs Zainab Ahmed has said.
She said the end of steel importation would save the nation of scarce foreign exchange in addition to booming local industries.
She said with a stable steel sector, the nation would witness industrialization.
The minister added that the ongoing huge investment in steel will attract auto companies which can produce cars in the country for Nigerians.
Mrs Ahmed spoke after an inspection visit to the $1.5billion steel plant of the African Natural Resources and Mines Limited in Jere in Kaduna State.
She said: “Producing one million metric tons of steel per annum means that Nigeria will really be well on its way of being independent of importing steel into our country and this will attract other investors to come into Nigeria.
“One of the main impediments has been the scarcity of high quality steel but with this project, we are now assured that we can attract the auto industries of the world to come into Nigeria and produce cars in Nigeria for Nigerians as well as for the region.
“From what I am told and I could immediately see, this is going to make a huge difference. This will be the first company that is producing steel, made in Nigeria high quality steel, that will be used by our industries and it will help us conserve our foreign exchange and help us fast-track our journey towards industrialization.
“I want to also say that what you are doing will be helping us very significantly in conserving our foreign exchange and the exportation of the steel will help us earn foreign exchange into the country.”
The Minister commended the company for being part of the nation’s policy on diversification.
She said the value chain of the steel plant is significant.
She added: “Just from entering here, I can see that the African Natural Resources and Mines Ltd project is actually a major partner for Nigeria’s economic development, as well as its diversification.
“What you are trying to do here proves that urbanization and industrialization are two sides of the same coin. Setting the record as the first steel company that will come on scene is very significant and I want to congratulate you for this.
“The design of your program of mining the ore that will be used to produce high grade steel means it is a well-planned and thought out project. The impact of it will go beyond the steel industry; I can see a very significant value chain effect including the support that you have provided for the people of Jere Local Government.
The Minister was also excited that the firm assisted Nigeria with N1.35billion to fight COVID-19.
She said: “On the social level, I have seen your contribution to the COVID-19, the people of Nigeria are very appreciative to you and others that have come together to provide significant resources that has helped us to effectively fight COVID-19, Nigeria has been known globally that we have had a very efficient system of responding to the pandemic and the response of the private sector in Nigeria is parallel to anywhere in the world.
“There is no country in the world that will industrialize without having a stable steel industry. Your partnership with us as a government means that we are on a very sound footing to meet our aspirations of industrializing Nigeria, I hope that this happens very quickly within the next five years to put us on the map as one of the industrialized countries of the world.”
The Group Managing Director, African Industries Group, Alok Gupta said the project will revolutionize the steel industry in Nigeria.”
He said that the company is capable of producing over one million metric tons of steel in a year.
His words, “Our work here will revolutionize the steel industry in Nigeria. We will be mining iron ore to produce DRI which will in turn allow African Industries to manufacture higher-grade steel more efficiently.
“This investment will elevate the profile of Nigerian Steel Industry at the global platform. In the long term it will dramatically increase domestic steel production.
“We believe Nigeria has a brighter future in the steel industry. With its vast potential, this nation will soon be a steel hub. We are proud to be part of the looming steel revolution in Nigeria. Having invested over
$1.5 billion, we are hopeful that the expected steel revolution will have multiplier effects on Nigerian economy.
“On a national scale, the steel produced can be used by industries where more specialized steel is required, especially the auto industry. Ultimately, this will result in further development of industries, a reduction in import of raw materials and conservation of foreign exchange.
“Within the immediate location, there will be significant economic and industrial development in this area by means of creation of several allied industries and social infrastructure. The surplus power we generate will further assist in developing other industries and residences and it will help in urbanization of the local area.
“On social level, we have been in the forefront of supporting many laudable projects. Our Group donated N1.35 billion to the Federal Government to combat the ravaging effects of COVID 19. Also, recently we donated the sum of N20m to our host Government, Kaduna State Government under the able leadership of Mallam Nasir el-Rufai for the forthcoming Kaduna Marathon, to mention but a few.
“I wish to assure that in the coming days we will continue to be associated with projects that would impact positively on the lives of the good people of Nigeria.”
