The Minister of Steel Development, Prince Shuaibu Abubakar Audu, in a landmark investment drive, signed a Memorandum of Understanding (MoU) with the Indian conglomerate, Rashmi Metaliks Group, on Tuesday, in Kolkata, India, for a projected investment of $1 billion over a three-year period.
This followed the Minister’s tour of the Rashmi Metaliks Steel Plant in Kolkata, where he commended the scale of the operations and advanced technology deployed at the facility.
According to a statement by the Head; Press& Public Relations, Salamatu F. Jibaniya, the Minister also lauded the company’s integrated operations — spanning Direct Reduced Iron (DRI), pig iron, billets and finished ductile iron pipes — describing them as a strong example of industrial efficiency and excellence in modern steel production.
He said Nigeria’s proactive investment drive is already attracting significant global capital. He noted that the MoU signed with Rashmi Metaliks Group represents a major milestone in Nigeria’s efforts to reposition the steel sector, reaffirming President Bola Ahmed Tinubu’s commitment to revitalising the industry, creating employment opportunities and conserving foreign exchange through strategic import substitution.
He added that the efficiency of the facility underscores the importance of value addition, innovation and sustainability in modern steel production, emphasizing that the visit further reflects the strengthening economic ties between Nigeria and India in the areas of steel, mining and manufacturing.
In signing the MoU, Minister Audu highlighted Nigeria’s vast steel potential, noting that the country is transitioning from a raw minerals exporter to a value-adding industrial economy. He disclosed that Nigeria possesses well over 3 billion tonnes of iron ore reserves, with some deposits grading as high as approximately 67 percent iron content (Fe), while domestic steel consumption is estimated at about $10 billion annually.
He said that Nigeria aims to become a leading steel hub in Africa under President Bola Ahmed Tinubu’s Renewed Hope Agenda, targeting crude steel production of approximately 10 million tonnes per annum by 2030. Recent Foreign Direct Investments in the sector includes: A $400 million Stellar Steel plant in Ewekoro, Ogun State, a Chinese-Nigerian joint venture for a modern hot-rolled coil steel plant scheduled to commence operations by November 2026, as well as the African Industries Group (AIG) which is completing a fully integrated iron-and-steel plant at Gujeni in Kaduna State.
He said the company has invested $300 million in the Direct Reduced Iron (DRI) and steel unit of the project; and the galvanising and fabrication plant in Ikorodu, Lagos, which was recently commissioned by the Minister.
The other is the energy infrastructure being developed to support the growth of the industry.
It would be recalled tat the Nigerian National Petroleum Company Limited (NNPC), the Ministry of Steel Development and their partners recently broke ground on five mini-LNG plants in Ajaokuta, Kogi State — a $500 million project aimed at boosting gas supply to the steel industry, with a combined capacity of approximately 97 million standard cubic feet per day.
Minister Audu used the visit to invite additional Indian investors to explore opportunities within Nigeria’s steel sector. He highlighted prospects for establishing integrated steel plants in Nigeria, deploying Direct Reduced Iron and electric-arc furnace technologies, and developing full value chains for automotive, construction and infrastructure steel.
He further assured prospective investors that the Nigerian Government remains committed to providing an enabling environment through policy stability, fiscal incentives and ongoing ease-of-doing-business reforms aimed at protecting investments.
“We are open to credible investors willing to partner with us for mutual growth,” the Minister said.
