The Minister of Steel Development, Shuaibu Audu, Tuesday signed a Memorandum of Understanding (MoU) with the Indian conglomerate, Rashmi Metaliks Group, 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.
He 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.
The minister, in a statement issued by Head, Press and Public Relations of the Ministry, Salamatu Jibaniya, stated that Nigeria’s proactive investment drive was already attracting significant global capital.
He noted that the MoU signed with the company represented a major milestone in Nigeria’s efforts to reposition the steel sector.
The minister noted that it also reaffirmed President Bola Tinubu’s commitment to revitalising the industry, creating employment opportunities and conserving foreign exchange through strategic import substitution.
Audu added that the efficiency of the facility underscores the importance of value addition, innovation and sustainability in modern steel production.
He emphasised that the visit further reflected the strengthening economic ties between Nigeria and India in the areas of steel, mining and manufacturing.
Audu highlighted Nigeria’s vast steel potential, stating 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 per cent iron content (Fe), while domestic steel consumption is estimated at about $10 billion annually.
He stressed 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.
Audu added: “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.
“African Industries Group (AIG) is completing a fully integrated iron-and-steel plant at Gujeni in Kaduna State.
“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.
“Energy infrastructure is also being developed to support the growth of the industry.
” 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.”
On his part, the Vice Chairman of Rashmi Metaliks Group, Mr. Sunil Patwari expressed appreciation to the Nigerian delegation for the successful visit to their facilities in Kolkata.
He emphasised that the visit reflects the priority placed on the partnership by the Nigerian Government and assured that, with the necessary support from the Nigerian government, Rashmi Group is committed to delivering on the projects envisioned in the MoU.