Innocent Onoh
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, has urged Nigerians to support locally produced steel materials for telecoms mast, power installations, and general building projects, in order to actualize the government’s goal of transforming the country’s steel sector.
Prince Audu made this call while inaugurating a state-of-the-art galvanized steel plant in the Ikorodu area of Lagos State.
Known as Orbit Galvanized Steel Industries Limited (OGSIL) ,the steel plant is owned by African Industries Group (AIG) a diversified global conglomerate with a legacy of 54 years of business excellence and sustainable growth.
According to Prince Audu, President Bola Tinubu’s Renewed Hope Agenda facilitated the attraction of the steel investment into the country, with the anticipation that it would aid in achieving the one trillion dollar economy target for the country, as well as generate large-scale employment opportunities for Nigerians.
“I am here to commission Orbit Steel Galvanizing plant owned by African Industries Group, a leader in steel producer in Nigeria and West African subregion. This plant has the capacity to produce 50 thousand metric tons of galvanized steel products annually.
“This plant which is the pioneer achievement of AIG in the galvanizing sub-sector has further reinforced the group’s committed to invest in the Nigerian steel sector with focus on local manufacturing of different steel products through backward integration for the overall benefit of this country. It is significant to stress that this project will play a critical role in driving President Bola Ahmed Tinubu Administration’a desire for local content policy,” said Audu at a reception in his honour after touring the expansive facility, amid chants of joy by cultural dancers mostly women and youths who had joyfully welcomed the Minister and his team.
” It is very clear to Nigerians that President Bola Ahmed Tinubu, under his Renewed Hope Agenda is very serious about turning around the Nigerian economy. He created a stand alone Ministry of Steel Development in August 2023 for the first time in our history and we have started to see immediate and significant changes. The President is serious about creating a one trillion dollar economy in Nigeria in 2030 and to make us one of the top 20 leading economies in the world,” he said.
The Minister appealed to Nigerians to support the noble initiative by patronizing local steel producers for their materials for telecom mast, power generation, and general building projects. He emphasized that local products are of high quality because the companies licensed to operate in the country are global leaders.
Prince Audu also noted that another good reason Nigerians should patronize local products is to encourage local manufacturers as well as save foreign exchange.
His words “Galvanized iron and steel process which entails application of protective zinc coating products is designed to prevent rust and improve durability in its usage in a wide variety of applications. Its corrosive resistance makes it ideal for pumping materials and outdoor structures.
” We import about 4 billion dollars worth of steel products into Nigeria annually . We want to reverse that trend and try to reduce the amount that is spent on steel import so that we can save the foreign exchange. African Industries group is helping us to achieve that. We want to encourage companies to continue to do well,” he stated.
Prince Audu described steel as the bedrock of industrialization, noting that the purpose of his trip was to tour some steel companies within the Ikorodu-Sagamu-Abeokuta axis in Lagos and Ogun States.
Audu stated that part of what the ministry is also trying to do is to create a Metallurgical Industry Bill where physical incentives can be set aside to encourage steel production, thereby saving billions spent annually importing the materials into the country.
He said “We are encouraging private sector local players to be able to improve their capacity. I am here to encourage them. Before the Metallurgical Industry Bill is passed, we have to be able to find ways to encourage them.
“If you look at the total production capacity of the African Industries Group, it is well over 1. 2 million metric tons. In fact the purpose of my trip is to tour a number of steel companies including the African Industries Group to support the entire sector. We want to find out what challenges they have and to see how as a government we can help to improve and encourage local production.”
The Steel Development Minister stressed the Federal Government’s commitment to creating an enabling environment for the private sector investors to thrive, promising that the Government would continue to enact laws and regulations that would drive investments in the economy.
Giving an overview of the facility, Barrister Uche Iwuamadi, an Executive Director of the company explained that they are dedicated to making Nigeria self-sufficient in steel production as well as derive maximum benefits from its abundant minerals deposit.
Barrister Iwu, who noted that the entire company’s facilities can create up to 10,000 direct employment and 15,000 indirect employees, thanked President Bola Tinubu for creating a fertile investment climate that motivated them to come and invest in the country.
He said that the group which started as a trading company in the country 54 years ago had grown into a conglomerate with 11 business verticals and 35 manufacturing units, with total investments exceeding $2.1 billion.
After inaugurating the steel plant, the Minister and his team proceeded to pay a courtesy visit to the Deputy Governor of Lagos State, Dr. Obafemi Hazmat, who received them on behalf of the governor.
Hazmat, appreciated the federal government for doing so much to make life more meaningful for Nigerians, assuring the Minister that the state government stands firm with them in delivering democratic dividends to Nigerians, Lagosians in particular.