Business
Nigeria To Produce N3m Tonnes Of Steel, Annually
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, on Thursday while inaugurating a N70 billion steel plant.
He said that the government would continue to provide enabling environment for 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 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 the realisation of the 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 also,” 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.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
