The Federal Government has intensified efforts to revive Nigeria’s steel industry through a combination of policy reforms, strategic investments, and investor incentives aimed at positioning the sector as a major driver of industrialisation, job creation, and economic growth. The renewed commitment was announced during the 5th African Natural Resources and Energy Investment Summit (AFNIS 2026) held in Abuja.
Speaking at the summit, the Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the government is implementing key reforms to transform the steel industry into a catalyst for economic development. He stressed that African countries must move beyond exporting raw minerals and focus on local processing, manufacturing, and value addition to maximise the continent’s resource wealth.
The minister noted that Nigeria possesses abundant deposits of iron ore, limestone, and dolomite, giving the country a strong competitive advantage to become a leading steel-producing nation. However, he acknowledged that challenges such as inadequate infrastructure, low domestic production capacity, and dependence on imported steel have constrained the sector’s growth.
To address these challenges, the government is accelerating the revival of key national assets, including the Ajaokuta Steel Plant, the National Iron Ore Mining Company (NIOMCO), and the Aluminium Smelter Company of Nigeria (ALSCON). According to Audu, a technical audit of the Ajaokuta Steel Plant is currently underway, while discussions with investors and development partners have progressed toward securing its full rehabilitation and eventual operation.
The government also disclosed that several major private-sector investments are in the pipeline, including a $400 million steel plant in Ogun State, a proposed $1 billion investment by India’s Rashmi Metaliks Group, and plans to recommission Premium Steel and Mines Limited. These projects are expected to significantly expand Nigeria’s steel production capacity and attract additional foreign direct investment into the sector.
To encourage investment, the Federal Government has introduced a range of investor-friendly incentives, including tax holidays, duty waivers, and capital allowances. Work is also ongoing to establish a new legal and regulatory framework for the metals industry, aimed at improving transparency, strengthening investor confidence, and creating a more competitive business environment.
The minister reaffirmed Nigeria’s commitment to leveraging the African Continental Free Trade Area (AfCFTA) to strengthen regional manufacturing, promote intra-African trade, and develop integrated industrial value chains. He noted that a vibrant steel industry is essential for supporting sectors such as construction, infrastructure, automotive manufacturing, defence, and renewable energy.
Industry analysts believe the government’s renewed focus on steel development could reduce Nigeria’s dependence on imported steel products, lower production costs for local manufacturers, create thousands of jobs, and stimulate broader industrial growth. They also note that a fully operational steel industry would enhance Nigeria’s competitiveness as Africa continues to pursue industrialisation and economic integration.
