“Over 95% of the current steel production in Nigeria is from scrap metal. Consequently, our focus is on developing the upstream mining sector, as we are endowed with huge iron ore deposits.”
Abubakar Bawa Bwari, Minister of State for Mines and Steel Development, disclosed this when he addressed global steel firms during the just held 4th International Conference and Exhibition India Steel Expo 2019.
He told the global steel producers that the country’s proven reserve estimate of iron ore is over 2.5 billion metric tonnes and an estimate of 36% iron content.
“Our desire to develop a vibrant steel industry is evident. We are certain of our ore resource base and the requisite additives for steel production namely: limestone/dolomite, clay/silica sand and coal.
Our target is to increase the present total mining sector contribution to the national GDP from 0.3% to 3% in 2019 & 10% – 15% by 2025, and also to increase steel consumption per capita from less than 10kg to 40kg by 2025; and increase contribution of the steel sector to the basic raw material input of other strategic sectors,” he said.
He told prospective investors that
“The Nigeria mining policy allows for 100 percent ownership of companies by foreigners with free transferability of earnings.
“I want to invite all genuine investors in the industry to explore the opportunities available in the Nigeria steel sector in view of the conducive business climate, abundant steel raw materials and the obvious huge market due to its population, as well as the scope of our infrastructural development projections, ” he said.
He assured prospective investors that “Ease of Doing Business in Nigeria is a major focus of the present Administration and that Company registrations can be executed online and processing of mineral titles accomplished within 45 days.
The investment opportunities in the steel sector of the Nigerian economy are premised on:
♦Abundance of major Steel Raw Materials in Nigeria, which include: Iron ore, limestone/Dolomite, Clays/silica sand.
♦Favorable Key Enablers for the Nigerian Steel Industry which include duty Free Imports for Mining/Steel Plant Equipment.
♦The existing capacities in the Nigerian Steel Industry is encouraging; the country spends about $3.3Million USD on importation of different Steel products according to the Nigerian Bureau of Statistics report – a gap which presents great opportunities for investment.
♦We have a total of 43 Steel plants and fabricating outfits in the value chain, 90% of which operate in the downstream sector. Indian companies, in particular have been very reliable players in this sector which makes it more imperative for us to be here.