Nigeria targets steel dominance with major foreign investment push

FG seals $1bn deal with Indian firm to revive Nigeria’s steel industry

The Federal Government has intensified efforts to revitalise Nigeria’s steel sector following the signing of a $1 billion Memorandum of Understanding (MoU) with India-based Rashmi Metaliks Group.

The agreement was formalised in Kolkata by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, as part of broader initiatives aimed at attracting foreign direct investment and accelerating industrial development.
This was disclosed in a statement issued in Abuja by the Ministry’s Head of Press and Public Relations, Salamatu Jibaniya.
According to the statement, the investment—expected to be executed over a three-year period—is designed to boost local steel production, create jobs, and reduce Nigeria’s reliance on imported steel products.
It noted that the initiative aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which focuses on economic diversification and infrastructure expansion.
The statement emphasised that Nigeria is strategically positioning itself to emerge as a leading steel production hub in Africa by 2030.
It further highlighted the country’s abundant iron ore deposits and strong domestic demand, valued at billions of dollars annually, as major attractions for investors.
The ministry also referenced ongoing progress in the sector, including the establishment of new steel plants and the development of energy infrastructure to support industrial activities.
Improved gas supply and the adoption of modern production technologies were identified as key drivers for achieving sustainable growth in the industry.
The Federal Government reaffirmed its commitment to ensuring a stable policy framework, offering fiscal incentives, and promoting ease of doing business to protect investments and encourage partnerships across the steel value chain.
Officials of Rashmi Metaliks Group, the statement added, have welcomed the partnership, expressing confidence in Nigeria’s investment climate and pledging to fulfil the terms of the agreement.
The collaboration is also expected to deepen economic relations between Nigeria and India, particularly in the areas of steel, mining, and manufacturing.