Business

Kayode Fayemi: ‘Nigeria spends $3.5bn on steel importation annually,’ Minister says

Kayode Fayemi: ‘Nigeria spends $3.5bn on steel importation annually,’ Minister says

The Minister of Mines and Steel Development Kayode Fayemi speaks during an exclusive interview with Reuters in Abuja, Nigeria October 11, 2016. Picture taken October 11, 2016. REUTERS/Afolabi Sotunde

Minister of Mines and Steel Development, Kayode Fayemi made the disclosure on Thursday, March 16, during a town hall meeting in Lagos.

Minister of Mines and Steel Development, Dr Kayode Fayemi has revealed that Nigeria spends more than $3.5billion annually on the importation of steel products.

Fayemi made the disclosure on Thursday, March 16, during a town hall meeting in Lagos.

“The steel industry still remains the backbone of industrialization in any country. Any country that wants to make headway in manufacturing and industrialization must pay particular attention to steel development,” Fayemi said according to The Nation.

“In Nigeria, we utilize about 7 million metric tons of steel on annual basis and we produce less than 3million tons and from scrap mainly. And even the scrap is being depleted now; so we run the risk of depending almost solely on importation.

“We spend over $3.5 billion importing steel products into Nigeria annually; you can see the opportunity cost and the importance of ensuring that Ajaokuta comes on stream.

“That’s why government has been determined to ensure that the litigation around it was resolved and we can put it to those who have the technical knowledge and financial capacity to intervene and bring it to life in a manner that liquid steel can be produced from our own iron ore endowment in the country.

“Then the liquid steel will be made available to rolling mills across the length and breadth of Nigeria to use for direct steel production rather than depending on scrap metals.

“The timeline for the Expression of Interest (EoI) will happen in the next six months. I’m not saying we are bringing it to life in the next six month but the process of those who have an interest in coming to put Ajaokuta into practical use within the period I mentioned. We have had a number of players both local and foreign that have shown interest,” he added.

ALSO READFayemi distributes rice, cash to Ekiti residents for yuletide celebration

Fayemi also said that the Federal Government was determined to make the Ajaokuta Steel Complex work by selling it to private investors.

Source: Business

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

More in Business

General Motors: US Supreme Court blocks appeal on defective ignitions

adminApril 24, 2017

Dubai Aerospace Enterprise: Corporation to triple size with AWAS acquisition

adminApril 24, 2017

AkzoNobel: PPG splashes out for third bid for Dutch paintmaker

adminApril 24, 2017

Philips: Electronics giant posts sevenfold jump in profits in Q1

adminApril 24, 2017

Eric Olsen: LafargeHolcim CEO to step down over Syria probe

adminApril 24, 2017

Chevron: US energy giant faces big Australia tax bill after court loss

adminApril 21, 2017

Stock Market: Paris market falls after attack, before French elections

adminApril 21, 2017

Eurozone: Economy hits 6-year high in April

adminApril 21, 2017

Sky TV: Profits drop on rising UK football costs

adminApril 20, 2017

Copyright © 2016 NigeriaOnline.