Nigeria has signed a $1 billion Memorandum of Understanding (MoU) with Rashmi Metaliks Group to boost local steel production, in a move aimed at accelerating industrialisation and reducing dependence on imports.
Gatekeepers News reports that the Minister of Steel Development, Shuaibu Abubakar Audu, formalised the agreement during a visit to the company’s steel facility in Kolkata, where he commended its advanced technology and integrated production system.
Audu described the deal as a key milestone under the administration of Bola Ahmed Tinubu, noting that it would drive job creation, enhance value addition, and conserve foreign exchange.
He disclosed that Nigeria’s steel sector has already attracted about $2.2 billion in foreign direct investment, largely driven by reforms targeted at repositioning the industry for global competitiveness.
According to the minister, Nigeria is shifting from exporting raw materials to building a value-driven industrial economy, leveraging its estimated three billion tonnes of iron ore reserves—some with iron content as high as 67 per cent.
He added that the country is targeting annual crude steel production of 10 million tonnes by 2030 as part of plans to emerge as a leading steel hub in Africa.
Highlighting ongoing projects, Audu said a $400 million Stellar Steel plant is under development in Ewekoro, Ogun State, while African Industries Group is nearing completion of a fully integrated iron and steel plant in Kaduna State.
To further support the sector, the Nigerian National Petroleum Company Limited, in partnership with the Ministry of Steel Development, has launched a $500 million mini-liquefied natural gas project in Ajaokuta, Kogi State, aimed at improving gas supply to steel plants and boosting production capacity.
Audu noted that Nigeria’s domestic steel demand is estimated at $10 billion annually, presenting significant opportunities for investors across sectors such as automotive, construction, and infrastructure.
He assured investors of the Federal Government’s commitment to policy stability and business-friendly reforms.
“We are open to credible investors willing to partner with us for mutual growth,” he said.
In his remarks, Vice Chairman of Rashmi Metaliks Group, Sunil Kumar Patwari, expressed confidence in the partnership and pledged the company’s commitment to delivering on the agreed projects.
He added that the deal underscores Nigeria’s seriousness in attracting global investors and strengthening bilateral relations with India.
The minister is also expected to meet with India’s Steel Minister, H. D. Kumaraswamy, to explore further areas of collaboration before concluding his visit.
