Business
Poor Electricity Inhibits Steel Industry Growth – Stakeholders
L-R: Citizenship and Partners in Learning Manager, Microsoft, Ugochukwu Nwosu, Project Delivery Head, ICT-STP Education Services Ltd, Pradeep Joshi, STP Education Services Ltd, Gautham More, Special Adviser to the Rivers State Governor on ICT; Enger Goodliffe Nmekini, Special Assit. to the Rivers State Governor on Environmental Health Dr. Ogu Emejuru during offical launching of Badiliko Digital HUBS, in Port Harcourt, recently. Photo: Egberi .A.Sampson
Stakeholders have identified poor electricity supply as one of the factors inhibiting the growth of the nation’s steel industry.
Some of the stakeholders told newsmen on Wednesday that frequent power outages were preventing the steel companies from rolling out products to satisfy market demands.
Alhaji Isma’ila Bello, Managing Director, Crittal-Hope Ltd., Lagos, said the company was fabricating steel, aluminum windows and doors, but that poor power supply was the major problem adversely affecting production.
“In the past, the company had up to 2,000 workers who operated on shift basis, but today the employees are less than 200 and they work on single shift. And this is due to poor electricity supply.
“We consume about two drums of diesels daily, which translate to 480 litres per day. If you multiply that by N160 per litre, it means that we spend about N76, 800 per day.
“What is our profit margin if we spend such money on power alone. It is adversely affecting our business,” Bello said.
The National President, Iron and Steel Senior Staff Association of Nigeria (ISSSAN), Mr Otori Maliki, said many privately-owned steel firms in Lagos, including Crittal Hope Nig. Ltd.; NIWIL Nig. Ltd. and Eureka Nig. Ltd., were experiencing power challenges.
Maliki said the companies were producing at 30 per cent installed capacity due to poor power supply, and also lack of raw materials from Aladja and Ajaokuta Steel Rolling mills in Warri, Delta, and Kogi, respectively.
“There should be dedicated power supply lines for these companies to enable them function well.
“Also, the steel companies ought not to import raw materials if our rolling mills were functioning and prices of steel products would have been cheaper,” the union leader said.
Jos Steel Rolling Mill which became Zuma Steel West Africa after it was sold to private owners in 2003, is now dormant due to inadequate power supply.
The Group Executive Chairman of the company, Mr Innocent Zuma, told reporters that he was optimistic that the outfit would come back to life once there was adequate power supply.
“We are trying to get access to steady power supply; once we can get that the mill will come back on-stream,” Zuma said.
To address the problem, Zuma said the company was working toward establishing two power plants which, when completed, would serve not only the Jos Steel Plant but also other subsidiaries.
He said that the mill, when fully operational, would boost economic activities in Plateau, generate revenue, provide employment and empower the youths.
A Kano-based construction engineer, Abubakar Bello, also identified poor electricity as one of the problems bedeviling the steel industry.
“The steel industry requires electricity but the cost of electricity in this country is so high compared to what obtains in other countries.
“So, I appeal to the Federal Government to guarantee stable power supply to enable the industry produce enough steel materials for national development,” Bello said.
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos