Home West Africa Nigeria’s Steel Minister Advocates Local Expansion to Reduce USD 4bn Import Reliance

West Africa

Nigeria’s Steel Minister Advocates Local Expansion to Reduce USD 4bn Import Reliance

March 22, 2025

(3 Minutes Read)

Nigeria’s Minister of Steel Development, Shuaibu Abubakar-Audu, has expressed concern over the country’s USD 4 billion annual expenditure on steel imports, calling it a significant strain on foreign exchange and highlighting the urgent need to expand local production.

During a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna, he noted that Nigeria’s dependence on imported steel puts pressure on the naira and hampers industrial growth. The fact that Nigeria spends over USD 4 billion each year on steel imports is unacceptable, Audu stated, emphasising the necessity of focusing on import substitution through domestic production capacity and investment in exploration and development. He pointed out that the NSRMEA is essential to the federal government’s strategy for achieving a USD 1 trillion economy by 2030, as it identifies and maps the mineral resources vital for sustainable steel production.

Audu stressed that for Nigeria to achieve its desired steel production levels, the exploration sector must operate at full capacity, as this is crucial for completing the value chain. He praised the agency’s effectiveness, noting that recent assessments rank NSRMEA among the most productive organizations under the Ministry of Steel Development.

The minister also highlighted the importance of collaboration among agencies to boost production, attract private investment, and strengthen the industrial base. He revealed plans to work with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military-grade hardware domestically, which is expected to improve Nigeria’s self-sufficiency in defense manufacturing and increase demand for locally produced steel.

In light of fluctuating global commodity prices and ongoing pressure on the naira, policymakers are refocusing on backward integration and resource-based industrialisation. The federal government’s renewed commitment to steel exploration aims to reduce import reliance, conserve foreign exchange, and develop a competitive manufacturing sector. In 2023, Nigeria’s mineral exports reached N218.5 billion, but experts believe that local steel production is essential for fully realising the country’s industrial potential.