FG, Lagos govt commit to boost steel sector

The Lagos State Government, in a deliberate move to boost the operation of steel companies in Nigeria, has reiterated its commitment to collaborating with the Federal Government to achieve this goal.

Governor Babajide Sanwo-Olu, recognizing the negative impact that an inadequate power sector has on the industry, has promised to assist the Ministry of Steel Development in every way possible to ensure improvements.

Speaking on Tuesday through his Deputy, Dr. Kadri Obafemi Hamzat, the governor made this commitment while hosting the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and his entourage on a courtesy visit at his official residence on Osborne Road, Ikoyi. He acknowledged that steel companies are significant power consumers, a fact well known due to their energy-intensive operations.

“Lagos is grateful to Mr. President for signing the Fifth Amendment Bill No.33, the Devolution of Powers, which expands the scope of State Legislative powers to include the generation, transmission, and distribution of electricity within areas covered by the national grid system. This decentralized power system is the only way forward, allowing states to take control of their own destinies,” the governor said.

Governor Sanwo-Olu stated that the state had established various commissions, including the Lagos State Electricity Regulation Commission, independent market operators, and a rural fund to assist. He also mentioned that the state government had issued a Request for Proposal (RFP) to encourage the construction of five power plants across Lagos, with the process already underway.

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The governor further reaffirmed the state’s commitment to addressing power generation needs for steel development. “In another year, once the plants are operational, we will begin building our grids in a way that ensures these industries have the power they need. We are starting and aligning with the new power economy agenda set by Mr. President,” he said.

Earlier, Minister of Steel Development Prince Audu expressed appreciation for the Lagos State Government’s efforts in creating an enabling environment for the steel sector to thrive.

“Sixty percent of private steel companies, based on data from the Federal Ministry of Steel Development, operate in the Lagos, Ikorodu, Ogun, Sagamu, and Abeokuta areas. I am here with my team to engage with both the government and private steel companies to understand their challenges, identify opportunities, and explore how the ministry can create fiscal incentives to improve their operations,” the minister said.

He added that addressing these challenges is crucial to meeting President Bola Ahmed Tinubu’s goal of creating a $1 trillion economy for Nigeria.