By ABAH ADAH, Abuja
The Federal Government of Nigeria (FGN) has expressed satisfaction with the to US$600 million investment by the African Natural Resources & Mines Limited (ANML) a subsidiary of the African Industries Group (AIG) in the Kaduna Steel Plant which has begun production.
Minister of Steel Development Prince Shuaibu Audu Abubakar made this known in his remarks after being conducted round the plant during his working visit to the plant alongside the Indian High Commissioner to Nigeria, Shri Balasabramania on Thursday.
African Natural Resources & Mines Kaduna steel plant, also known as ANRML; African Industries Group, is a direct reduced iron (DRI) steel plant with an iron ore mine that feeds it in Gujeni village in Kagarko Local Government Area, LGA, of Kaduna State, Nigeria.
The Minister said, “The facility you have here, including the mine, is amazing; it’s a massive one on a 900 hectares piece of real estate. And It’s very clear that it dovetails into the Renewed Hope agenda of President Ahmed Tinubu whose dream and desire is to grow the economy to over US$1 trillion by the year 2030.
“What we’re seeing here is putting us on the right track. Some of the important things I have noted here is that the AIG group has invested close to $600 million dollars in this plant, and the primary production activity which is mining of iron ore – the raw material for steel production takes place here.
“And like the GMD of AIG mentioned, steel is the catalyst for industrialisation in any nation throughout the history of the world, so it’s a very important component; AIG is playing a very important role in taking Nigeria to the next level.”
ALSO READ: NESREA engages CSOs, Media In Promoting Compliance With Battery Regulations
He appreciated the AIG group for believing in the country to invested for decades, creating jobs for Nigerians through their investments across the country even as he tasked them to do more in helping the country meet its local demand from within and export the excess.
“And I want to urged the company to invest more to help us meet our local demand. About 10 million metric tonnes worth $4 billion, from what I understand, are still being imported into this country, and I think this company has a very significant role to play in helping us to reverse that trend, to enable us meet local demand and export the excess,” he said.
Responding, the AIG Group Managing Director (GMD) Alok Gupta, thanked the Minister for the visit and for his pledge to support indigenous steel companies such as AIG group in Nigeria.
“I’m confident that under ur dynamic leadership we will see a revival of the local steel sector. We stand by ur commitment to revitalize the nation steel to meet both local and international consumption,” he added.
The GMD disclosed that AIG group which began in the late 20th century and established the first plant to manufacture steel products with ferrous scraps as at then now has more than 70 steel plants across Nigeria with a combined capacity of 1.2 million metric tonnes per annum.
“We manufacture a wide range of products that are used in the construction sector, like iron rods, steel angles, steel pipes, square rods, steel rods, binding wire, wire mesh, etc. It’s estimated that Nigerians blessed with over 2 billion metric tonnes of iron ore reserves,” he said.
Mr Gupta stated that the company is the first and only one in the country to have successfully achieved backward integration in the steel sector.
He reaffirmed the company’s commitment to transform Nigeria from a net importer of steel to a net exporter, contributing to a favourable balance of trade in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
On his part, the Indian High Commissioner said he went round with the Minister and was pleased to see the huge contribution made by the AIG’s ARNML through their massive investment in terms of money, technology, as well as the large manpower being used.
He said the foreign policy of the government of India under Prime Minister Narendra Modi has Africa, particularly Nigeria, as centre piece for socio-economic cooperation.
“We’re proud to have industrialists such as the Gupta family who have contributed immensely as part of Indian companies in Nigeria,” he said.
Of the $14 billion investment in Nigeria promised when President Tinubu visited India and had a discussion with the Prime Minister recently, the High Commissioner disclosed that about $7 billion had already been factified by the about 200 companies of Indian origin in the country.