Africa’s richest man, Alhaji Aliko Dangote has made plans to delve into steel production in the near future stating that he wants to ensure that every steel used in West Africa comes from Nigeria.
The industrial magnate stated this during an interview at the ongoing Afreximbank Afro-Caribbean Trade & Investment Forum in Nassau, Bahamas.
When asked if he is taking a break after the refinery, he noted that the next venture after the refinery project would be in steel manufacturing and ensure that all steel products used in West Africa come from Nigeria.
He also encouraged African leaders to take agriculture and solid mineral development seriously, lamenting the fact that food imports are costing the continent dearly by increasing unemployment and poverty.
He said, βWhat we need to do and what’s missing is actually focusing and paying more attention to agriculture and solid minerals. I don’t like people coming to take our solid minerals to process and bring the finished product. We must try to industrialize our continent and take it to the next level.”
βI told someone we’re not going to take a break. What we are trying to do is to make sure that at least in West Africa, we want to make sure that every steel that we use comes from Nigeria.β
Efforts to revive the Nigerian steel industry
Nigeria has tried unsuccessfully to become a leader in the steel manufacturing industry with a handful of failed projects such as the Ajaokuta Steel Plant, Delta Steel Company, Osogbo and Jos Tires even under state and private ownership.
Like oil refineries, the federal government has spent billions trying to get local steel mills up and running, but has failed. President Bola Tinubu’s administration had promised during the campaigns to ensure the commencement of steel production at the multi-billion dollar Ajaokuta steel complex.
The Federal Government in its 2024 appropriation act has budgeted about N4.45 billion for the plant but hopes to raise about N45 billion from private investors to commission the plant for the first time in its history.
However, Steel Development Minister Shuaibu Audu also said that reviving the plant could cost about $2 billion to $5 billion.
Opportunities in the Nigerian Steel Industry
According to National Steel Raw Materials Exploration Agency (NSRMEA), total steel consumption in the country averages around 10 million metric tons, of which 70% is imported. The current Minister of Steel Development had earlier stated that Nigeria spends about $4 billion on steel imports annually despite having about 74 steel mills and steel manufacturers across the country.
Nigeria is home to significant deposits of iron ore – a critical raw material in steel production located in Kogi State.