Tinubu Gov’t Unveils Plan To Manufacture Military Hardware Locally At Ajaokuta Steel

The Bola Ahmed Tinubu Government has unveiled plans to commence local production of military hardware at Ajaokuta Steel Company as part of efforts to establish a military-industrial complex in Nigeria.

Minister of Steel Development, Shuaibu Abubakar-Audu, disclosed this during a visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna on Thursday.

He revealed that the Ministry of Steel Development is collaborating with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to implement the initiative.

According to him, a Memorandum of Understanding (MoU) has already been drafted and shared with DICON, pending presidential approval.

“One of President Bola Tinubu’s key objectives is the rehabilitation of Ajaokuta Steel Company. We are working towards integrating military hardware production into the complex as part of a broader plan to establish a military-industrial complex in Nigeria,” he said.

This initiative is expected to boost Nigeria’s defence capabilities, reduce dependence on imported military equipment, and position Ajaokuta Steel as a strategic asset for national security and economic development.

Reducing Dependence on Steel Imports

Beyond military hardware production, the minister emphasized the urgent need for import substitution in Nigeria’s steel sector.

He revealed that the country currently imports steel worth approximately $4 billion annually, which places significant pressure on foreign exchange reserves.

Audu stressed the importance of enhancing domestic production capacity, positioning NSRMEA as a key driver of the Federal Government’s economic growth strategy, which aims to expand Nigeria’s economy to $1 trillion by 2030.

“For Nigeria to produce steel in the large quantities we desire, it is very important that the exploration arm of the industry is operating at full capacity,” he said.

Revamping the Steel Industry

Commending NSRMEA for its outstanding performance, Audu noted that the agency had been ranked among the best-performing institutions under the ministry.

As part of efforts to reposition the steel sector, he announced plans for Nigeria’s first-ever steel summit. The summit will bring together industry stakeholders to develop a strategic blueprint for the sector’s growth.

Additionally, the minister highlighted the progress of the Metallurgical Industry Bill, which has passed its second reading in the House of Representatives.

“The bill, once passed and signed into law, will provide a regulatory framework for both private and corporate steel players, ensuring proper governance and development of the sector,” he said.

Attracting Foreign Investment and Expanding Production

Audu further disclosed that the government is actively attracting foreign direct investments (FDI) into the steel industry.

He referenced President Tinubu’s visit to New Delhi in September 2023, where a commitment was secured for the production of five million metric tonnes of steel in Nigeria.

“In addition, a Chinese company, Galaxy, is investing $300 million in a steel plant in Ogun State. These investments will expand Nigeria’s steel production capacity,” he said.

The minister also revealed that a long-term roadmap spanning 5-10 years is being developed for the steel industry. This roadmap will incorporate best practices from successful steel-producing nations to ensure sustainable growth.

Acknowledging the longstanding challenges in Nigeria’s steel sector, Audu pointed out that the industry has remained largely non-functional for 45 years. However, he expressed optimism that ongoing reforms and strategic initiatives would revitalize the sector.

“Our target is to produce 10 million metric tonnes of steel annually. Once our plans are fully implemented in the next five years, we will achieve all our objectives and significantly reduce the country’s reliance on imported steel,” he said.