Business
Nigeria To Produce Three Million Tons Of Steel –Minister
Nigeria plans to produce three million metric tonnes of steel products annually by 2015, the Minister of Mines and Steel Development, Mr Mohammed Musa Dada, has said.
Dada disclosed this in Odongunyan, Ogun State, yesterday while inaugurating a N70 billion steel plant.
He said that the government would continue to provide the enabling environment for the manufacturing sector to thrive.
”We will continue to encourage investors to develop the steel raw material reserve. The raw material is yet to be fully tapped because it requires high technology and huge fund to operate,” the minister said.
He said that it was imperative to engage all the operators and expand existing plants to create wealth and revenue for economic growth to achieve the objective of vision 20:2020.
Dada said that the steel industry remained the most valuable industry because of the application of its products in other sectors of the economy.
”It is in the realisation of its importance that the Federal Government established the Ajaokuta Steel Plant and other steel plants in the country,” he said.. Chairman of the Group, Mr Parduman Gulta, said that the company had so far invested N15 billion in the first phase of the plant to achieve production capacity of 500,000 metric tonnes of steel billets yearly. He said that the company would be investing additional N20 billion for the establishment of a modern steel mill to produce sections and profiles to make the country self-sufficient.
”There is no production of steel sections and profiles and the country depends exclusively on importation. On the commencement of production in the second phase of the project, the country will become self-sufficient for sections and profiles,” Gulta said.
He lamented the absence of alternative raw materials in the steel industry, adding that ” availability of steel scrap in Nigeria is diminishing each day”.
“We are afraid that if alternative raw material resources are not found, this huge sector may collapse, resulting in the loss of hundred thousand jobs and costing the country hundreds of millions of dollars,” he said.
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