Despite being ranked 12th globally in terms of iron ore endowment and an abundance of other steelmaking raw materials, Nigeria’s crude steel production per capita falls below 10 percent while the country continually struggles to meet up with its 20 million tonnes annual demand.
Uchechukwu Sampson Ogah, the minister of state, mines and steel development, made the assertion during a facility tour of African Natural Resources and Mines Limited Integrated Steel Plant in Gujeni Village, Kagarko Local Government Area of Kaduna State.
Ogah, however, assured that the ministry is committed towards ensuring that the minerals and steel sector becomes the mainstay of the Nigerian economy as enshrined in the present administration’s diversification agenda, adding that the ministry is ready to support genuine investors with the necessary incentives to improve the country’s steel output using appropriate fiscal measures.
Commenting on the Kaduna-based steel plant, he expressed optimism that the completion of the facility, being one of the biggest foreign direct investments in the sector, would be of immense benefit to the country, as it would help the federal government earn foreign reserves as well as provide employment for thousands of Nigerian youths.
The minister commended the Gupta brothers for investing in the Nigerian mining sector and enjoined them to provide regular updates to the ministry to enable it to support the completion of the facility, within the lifespan of the current administration.
Also speaking, Alok Gupta, group managing director, African Industries Group, disclosed that the site would process 5.4 million tonnes of iron ore and produce Direct Reduced Iron (DRI) for both domestic and export markets.
According to Gupta, a lesser dependence on oil revenue is key to the sustainable economic development of the country. He added that the 1st phase of the project, which is expected to be completed and commissioned in 2022, would provide employment for over 3,500 people.
In his remarks, Umar Hassan, director general, National Steel Raw Material Exploration Agency, stated that with about 5.4 million tonnes of iron ore expected from the facility, it would be the hub of Ore concentrates for the industry.
