Steel manufacturing remains a cornerstone of industrialization, economic development, and infrastructural growth. Nigeria, endowed with vast iron ore deposits, has the potential to become a leading steel producer in Africa.
The Ajaokuta Steel Mill in Kogi state, with its integrated blast furnace technology, represents a crucial investment toward self-sufficiency in steel production.
Here we explore and highlight the significance of steel manufacturing in Africa, emphasizing its national and continental benefits, economic impact, and industrial potential.
Steel is an essential component for national development, serving as the backbone of industrialization. Nigeria, with an estimated 2 billion metric tons of iron ore reserves, has the raw materials required for steel production.
Despite this advantage, the country’s steel industry remains underdeveloped, leading to an overreliance on imported steel products from China and India. The revival of the Ajaokuta Steel Mill presents a strategic opportunity for Nigeria to achieve self-sufficiency in steel production and drive economic growth.
Tochukwu Princewill Ojiako, a U.S.-based Nigerian Metallurgistand entrepreneur, has called on the Federal Government to prioritize steel production, particularly in Ajeokuta Mill, to drive economic and infrastructure growth in Africa.
Ojiako, is Mechanical Engineer, Metallurgist, and Entrepreneur, he is also Doctoral candidate in Materials Science and Engineering, Missouri University of Science and Technology, Researcher at the Kent D. Peaslee Steel Manufacturing Research Center (PSMRC).
In an exclusive interview with Nigerian Tribune, Ojiako argued that incentives such as tax breaks and funding for steel-related industries would significantly boost Nigeria’s manufacturing capabilities and reduce reliance on imported materials.
According to him, Nigeria is richly endowed with iron ore deposits, primarily located in Kogi, Enugu, and Zamfara states.
These reserves, if properly harnessed, Ojiako said it can support full-scale steel manufacturing, reducing dependence on imports and fostering local industrial growth.
The beneficiation of iron ore through appropriate metallurgical processes is crucial in ensuring a steady supply of raw materials for steel production.
He said the Ajaokuta Steel Mill was conceived as Nigeria’s primary steel production hub, utilizing blast furnace technology.
“This integrated steel plant, when fully operational, has the potential to produce millions of metric tons of steel annually, meeting local demand and supplying neighboring African countries.
“Additionally, Abeokuta holds vast potential for steel production, and investment in its steel sector could further diversify Nigeria’s manufacturing base, creating more opportunities for economic expansion”, he said.
Ojiako further stressed that developing these steel hubs would not only provide raw materials for construction and manufacturing but also serve as a springboard for innovation in the engineering and industrial sectors.
According to the expert, steel manufacturing and steel production in Nigeria offers numerous national benefits which include Economic Growth, Job Creation, Infrastructure Development, Foreign Exchange Conservation.
“A functioning steel industry will contribute significantly to GDP growth, increasing government revenue through exports and taxation.
“The steel sector has the capacity to generate thousands of direct and indirect jobs, from mining operations to manufacturing and distribution.
“Locally produced steel will reduce costs in the construction and manufacturing sectors, facilitating large-scale infrastructure projects such as roads, bridges, and housing.
“By reducing steel imports, Nigeria can conserve foreign reserves and strengthen its economic stability”, he said.
While highlighting more benefits of steel production, Ojiako said Africa can benefit Regional Industrial Growth, Economic Integration, Technological Advancement.
“Beyond the national advantages as heighted above, Nigeria’s steel industry can serve as a catalyst for Africa’s industrialisation.
“A self-sufficient Nigerian steel sector can supply steel products to other African nations, reducing dependency on imports from Asia and Europe.
“Nigeria’s steel industry can support the African Continental Free Trade Area (AFCFTA) by providing a reliable source of industrial raw materials.
“Investment in steel manufacturing will spur technological development and knowledge transfer within the continent”, he added.
However, according to the expert, the big question remains ‘what is the way forward?’
“Despite its potential, Nigeria’s steel industry faces challenges such as inadequate funding, poor infrastructure, and policy inconsistencies.
“To overcome these obstacles, the government must prioritize investments in steel production, enforce policies that encourage local sourcing, and create an enabling environment for private sector participation”, he asserted.
Ojiako emphasized the importance of government support through tax incentives, financial grants, and public-private partnerships to boost steel production in Nigeria.
He also highlighted the need for engineering and metallurgical innovation in improving steel production efficiency and sustainability.
In his final remarks, he stated that:
“Revitalising Nigeria’s steel industry, particularly through the full operation of the Abeokuta Steel Mill, is essential for national and continental development. With proper investment, policy support, and infrastructure development, Nigeria can position itself as a leading steel producer in Africa, driving industrialization and economic growth across the continent”, he added.
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