Despite possessing over three billion tonnes of iron ore reserves, Nigeria spends approximately $4 billion annually importing steel products, with analysts calling the situation a “grave indictment” on successive governments .
Nigeria has become a net importer of steel, with the country importing over seven million tonnes of steel products yearly despite having abundant iron ore reserves . Available industry data shows that Nigeria imports between eight and 10 million metric tonnes of steel annually, comprising construction steel, flat sheets, reinforcement bars and specialised alloys .
CDA News Nigeria gathered that the Ajaokuta Steel Complex, established in 1979 to boost industrialisation, has remained largely non-operational despite decades of federal efforts and billions of naira spent on salaries and attempted revivals . The plant was designed to reach a final capacity of 5.2 million tonnes of steel yearly .
“The government has tried for years to revive Ajaokuta and others, but it has yielded no result because there is really no sincerity in the processes,” an industry expert said . A former National President of the Iron and Steel Senior Staff Association of Nigeria called for a ban on importation of steel materials, noting that Nigeria has the capacity to produce all the steel it needs .
Stakeholders have identified chronic power shortages, competition from cheap imports from China and India, and lack of fully integrated steel plants as significant hurdles facing the sector . Industry observers believe a successful revival of local steel manufacturing could reposition Nigeria as West Africa’s industrial hub .
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