Nigeria’s Minister of Steel Development, Shuaibu Abubakar-Audu, has raised concerns over the country’s $4 billion annual steel import bill, describing it as a major burden on foreign exchange and an indicator of the urgent need for local production expansion.
Speaking during a strategic visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday, the minister said Nigeria’s heavy reliance on imported steel continues to exert pressure on the naira and undermines the country’s industrial growth objectives.
“The fact that Nigeria spends over $4 billion every year on steel imports is unacceptable,” Audu said. “This clearly signals the need to focus on import substitution by building domestic production capacity and investing in exploration and development.”
According to him, the NSRMEA remains a cornerstone in the federal government’s roadmap to achieving a $1 trillion economy by 2030.
The agency plays a critical role in identifying and mapping the mineral resources necessary for sustainable steel production.
“For Nigeria to produce steel in the volumes we desire, the exploration arm of the sector must operate at full capacity. Without it, the value chain cannot be complete,” Audu noted.
The minister commended the agency’s performance, stating that recent internal assessments have ranked NSRMEA as one of the most productive parastatals under the Ministry of Steel Development.
He also explained that there is a need for inter-agency collaboration to scale production, attract private sector investments and boost the industrial base.
As part of a broader national development strategy, Audu disclosed plans to partner with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military-grade hardware locally. This initiative is expected to enhance Nigeria’s self-reliance in defence manufacturing and stimulate demand for domestically produced steel.
“The defence sector is a significant consumer of steel. By partnering with DICON, we can create a strategic offtake framework that supports both national security and industrial development,” he added.
Nigeria’s steel sector has faced decades of underutilization due to policy inconsistencies, infrastructure deficits, and limited private sector participation.
Industry analysts have long identified steel as a fundamental driver of economic diversification, given its role in construction, automotive manufacturing, defence, energy, and transportation.
With global commodity prices fluctuating and the naira under sustained pressure, policymakers have renewed focus on backward integration and resource-based industrialisation.
The federal government’s renewed emphasis on steel exploration is part of wider efforts to reduce import dependency, save foreign exchange and build a competitive manufacturing sector.
In 2023, Nigeria’s total mineral exports rose to N218.5 billion, but experts believe local steel production remains the missing link in maximising the country’s industrial potential.
