The Federal Government has announced plans to manufacture military hardware at the Ajaokuta Steel Company as part of efforts to boost local production and strengthen Nigeria’s defence sector.
The Minister of Steel Development, Shuaibu Abubakar-Audu, disclosed this on Thursday during a visit to the National Steel Raw Materials Exploration Agency in Kaduna.
He said the government is partnering with the Ministry of Defence and the Defence Industries Corporation of Nigeria to make weapons and equipment for the Nigerian Armed Forces and other security agencies.
“One of President Bola Tinubu’s key objectives is the rehabilitation of Ajaokuta Steel Company,” Audu said. “We are working towards integrating military hardware production into the complex as part of a broader plan to establish a military-industrial complex in Nigeria.”
A Memorandum of Understanding has already been drafted and shared with DICON, pending approval from the presidency.
Audu also revealed that Nigeria currently spends about $4 billion annually on steel imports, adding that the country must focus on local production to reduce pressure on foreign exchange.
“For Nigeria to produce steel in the large quantities we desire, it is very important that the exploration arm of the industry is operating at full capacity,” he said.
The minister described the steel sector as a key part of the government’s plan to grow Nigeria’s economy to $1 trillion by 2030.
As part of efforts to reposition the steel industry, Audu announced plans to hold Nigeria’s first steel summit, which will bring together industry experts and stakeholders to create a detailed growth plan for the sector.
He also noted progress in the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives.
According to him, once the bill is passed into law, it will regulate the industry and create better opportunities for private and corporate steel manufacturers.
The minister highlighted ongoing efforts to attract foreign investments into the sector. He pointed to President Tinubu’s visit to New Delhi in September 2023, where an agreement was reached to produce five million metric tonnes of steel in Nigeria.
“In addition, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity,” he added.
Audu admitted that the steel industry had been struggling for 45 years but expressed hope that new reforms would revive it.
“Our target is to produce 10 million metric tonnes of steel annually. Once our plans are fully implemented in the next five years, we will achieve all our objectives and significantly reduce the country’s reliance on imported steel,” he said.
The Federal Government believes that reviving Ajaokuta and other steel projects will not only boost Nigeria’s economy but also create jobs and improve local production of essential materials.
