Aliko Dangote, Africa’s richest man, has announced his plans to establish steel industry in Nigeria. His ambition is to provide all of West Africa’s steel from Nigeria.
Dangote announced these ideas during the ongoing Afreximbank Afro-Caribbean Trade & Investment Forum in The Bahamas.
Dangote aims to focus on steel production once his oil refinery project is completed.
He said, “I told somebody we’re not going to take a break. What we’re attempting to do is ensure that, at least in West Africa, all of the steel we use comes from Nigeria.”
Dangote also urged African countries to prioritize agriculture and solid minerals in order to lessen reliance on imported food and other goods, which he believes contributes to unemployment and poverty.
Nigeria’s efforts to lead in steel production have been marred by numerous setbacks, including the failure of projects such as the Ajaokuta steel mill and Delta Steel Company.
These problems have continued under both government and private ownership due to ineffective management and insufficient investment.
President Bola Tinubu’s administration has pledged to resuscitate these projects, particularly the Ajaokuta steel complex.
The government has set aside N4.45 billion for the facility this year and intends to seek an additional N35 billion from private investors.
According to Shuaibu Audu, Minister of Steel Development, the government will need between $2 billion and $5 billion to restart the factory.
Nigeria imports 70% of its steel, costing approximately $4 billion each year. This is despite having considerable iron-ore resources, which are critical for steel production, particularly in Kogi State.
Dangote’s new steel business intends to reduce imports, enhance Nigeria’s economy, and give greater stability to the area by making it self-sufficient in steel production.
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