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

Heritage Bank: Financial institution not involved in management fraud

adminAugust 28, 2017

NNPC: Corporation says 98% of documents in crude sale transactions are fake

adminAugust 28, 2017

TCN: Company raises $2billion for 20,000mw expansion

adminAugust 21, 2017

Oil And Gas: US Agency approves N360m grant for development of modular refinery in Nigeria

adminAugust 14, 2017

Power Generation: FG commissions 1,000 km gas pipeline

adminAugust 7, 2017

Kemi Adeosun: 10 things Finance Minister said about paying tax

adminAugust 7, 2017

CBN: Apex bank injects $195M forex intervention

adminJuly 31, 2017

Godwin Emefiele: CBN not ready to cut interest rates, says Governor

adminJuly 24, 2017

CBN: Apex bank boosts foreign exchange supply with $195M

adminJuly 17, 2017

Copyright © 2016 NigeriaOnline.