Repositioning Nigeria’s Steel Sector: Minister Rallies Dev’t Partners, Donor Agencies For Support
By SUNDAY ABBA, Abuja
As part of efforts to bring the Nigerian steel sector up to speed with global standards to fulfil its mandate of industrialising the country, Minister of Steel Development, Shuaib Abubakar Audu, has rallied development partners and international donor agencies for financial and technical supports towards reviving key steel assets in the country.
Meeting with them in his office on Tuesday in Abuja, the Minister stressed the capital-intensive nature of the steel sector and the urgent need for massive investment to upgrade the infrastructure and operational capacity of the industry.
Highlighting the financial constraints, Pthe Minister said: “We are facing significant funding challenges, but the President has mandated us to think outside the box and explore innovative solutions. We have approached the Budget Office and the National Assembly for increased funding beyond the initial budget proposal.
“In addition, we are actively engaging donor agencies to bridge the gap. Steel production requires substantial investment, whether in raw material processing, infrastructure like deep-sea ports, or rehabilitating existing steel plants.”
Addressing the 2025 budget for the steel sector, the Minister described it as a strategic blueprint to transform the industry into a globally competitive and sustainable driver of Nigeria’s economy.
“While our capital budget for 2025 outlines an ambitious roadmap, we recognise the financial hurdles ahead.
“Transforming a capital-intensive industry like steel requires significant investment, beyond what the government alone can provide. This is why we seek the partnership of international development agencies, whose technical expertise, financial resources, and global experience are indispensable,” he noted.
“In this spirit of shared purpose, I request your technical assistance, financial investments, and strategic guidance. Together, let us build a future where Nigeria’s steel industry is a dynamic engine of growth, a generator of jobs, and a cornerstone of our economic diversification.
“Ladies and gentlemen, the Ministry of Steel Development stands at the threshold of an industrial renaissance a renaissance that promises to reshape our nation’s economic landscape. The vision laid out in our 2025 capital budget is both ambitious and necessary, encompassing the revitalization of legacy assets, capacity development, policy reforms, and the promotion of domestic and international trade. Yet, as we embark on this journey, we recognize that our success hinges on the strength of our partnerships.
Stressing further the need for collaboration and support of the stakeholders to succeed, Audu said, “I enjoin you to join us in this journey. Your support today will pave the way for a thriving steel sector that not only fuels Nigeria’s industrial engine but also builds a better, more prosperous future for all.”
In the same vein, the Permanent Secretary in the ministry, Dr. Chris Osa Isokpunwu, harped on the importance of a collaborative approach for sustainable development.
Responding, the various international development partners in attendance expressed their willingness to collaborate with the Nigerian government:
The Australian High Commission in Nigeria assured support, particularly in technical assistance, citing synergies between Australia and Nigeria in steel production.
Dr. Osuji Otu, Nigeria Country Representative for UNIDO, acknowledged the steel sector’s vital role in industrial development and revealed that UNIDO is preparing to launch a 2024–2028 country partnership program.
Ms. Elsie Altafua, UNDP Country Representative, reiterated UNDP’s commitment to providing technical assistance, aligning with Nigeria’s five-year strategic plan for steel development.