Steel Production in Nigeria

ARC. Musa Mohammed Sada, the Honourable Minister of Ministry of Mines and Steel Development. He was appointed April 6th 2010 when President Goodluck Jonathan became acting President. There have been rumours that the Federal Government may likely settle the case between it and the Indian Company (Global Infrastructure Nigeria ltd) over Ajaokuta Steel concessionaire agreement. Though its not official but we were wondering why until i travelled to Abuja two days ago and went to the Ministry and stumble on this article that i am reproducing here.

The federal government has expressed its readiness to partner with the Turkish government in the development of its steel sub- sector for the economic benefits of the nation. Minister of mines and steel development, Arc. Musa Mohammed Sada made the expression when he received in audience a 5-man delegation of the Steel Exporters Association from Turkey led by the Ambassador of Turkey to Nigeria, H.E Ali Rifat Koksal recently. The minister who lauded the existing bilateral relationship between Nigeria and Turkey, said “Turkey is an important and critical partner in our development activities particularly in the extractive industries, we have a very long history for instance in the steel production. We believe with the level of trade relationship that we had, you will be a very good partner in the development of the steel industry in the country, we need to learn from you and get you involved with the privatization activities in the sector”. He said the country which is blessed with huge reserves of iron ore with good quality as one of the raw materials for the steel production required higher consumption of steel for its infrastructural development. Arc. Sada disclosed that government was working seriously in ensuring that the moribund steel industries in the country are revitalized towards the industrialization of Nigeria, stressing that, with the new mining reforms, the government plays the role of a regulator while private investors operate in the minerals and metals sector. He expressed hope that with the existing bilateral relationship between Nigeria and Turkey, the two countries would be able to move the minerals and metals sector of Nigeria forward. He decried that Nigeria which is blessed with huge reserves of iron ore, still imports steel to meet its needs, adding that, the nation was faced with the problem of quality control in its importation of steel. Arc. Sada said the present administration was currently working towards the enactment of relevant legislation which would ensure some level of quality control in the steel production. The minister said the minerals and metals sector required partnership with technical experts who can give appropriate technical skills and expertise to grow the sector. He reiterated government’s resolve to provide a conducive atmosphere for investments to thrive, adding that, Nigeria was hopeful of getting reliable partners in its determination to reactivate its steel industries. He said the visit of Turkish investors would further strengthen the existing business relationship as well as provide a platform for interaction between the two countries on the way to work together for mutual benefits. Earlier in his address, the Ambassador of Turkey and leader of the delegation, H.E Ali Rifat Koksal said the mission of their visit was to explore areas of collaboration with the ministry for the mutual benefits of Nigeria and Turkey. Also speaking, the Chairman of the Board, Steel Exporters Association, Namik Ekinci who spoke through a translator and Sector Manager, Steel Exporters Association, Pinar Tokur said they were at the ministry to strengthen relationship with Nigeria and seek ways of promoting trade with the Nigerian business communities. Namik lauded the President Goodluck Jonathan’s determination to place Nigeria among the first twenty biggest economies in the world by the year 2020, saying that, the government of Turkey was ready to be part of the history. He said “Nigeria is a very important country for us, we are not only looking to trade but to make investments here in industry and for these investments, first of all trade is very important. Although we have iron ore in Turkey, we still need 7.5 million metric tons of iron ore, we are aware of this as far as this sector is concerned, and for this we think Nigeria is a very important to us.

The above article was carried in the Ministry newsletter published in July 2012. Well, it looks like the Federal Government is ready to partner with the Turkish Government in the development of the Steel Sub-Sector. Its about time too. Steel production is expensive but very profitable and if our government cannot do it alone, there is nothing wrong in partnering with other countries and investors. The indians made good money in producing and selling the 12mm and others then. We can improve on that. I pray the case would be settled so that production would commence in Ajaokuta Steel and mining of iron ore would commenced too in NIOMCO, Itakpe. Copyright 2006-2012 Ministry of Mines and Steel Development. Contact us | Site map | Feedback