President Bola Tinubu has described the Ajaokuta Steel Company as an economic failure and a threat to Nigeria’s sovereignty.
The President disclosed this on Wednesday in Abuja at the Inaugural Stakeholders Summit on the Development of the Steel Sector in Nigeria with the theme; “Rebuilding And Consolidating Nigeria’s Steel Industry: Collaborative Action For Sustainable Growth And Global Competitiveness”.
Tinubu, represented by the Vice President, Kashim Shettima stressed that the company symbolised unrealised hope.
He stated: “How can we build, manufacture, or defend ourselves without the material that enables all three? Steel is more than an industrial input.
“The steel industry symbolises so many of our unrealised hopes, and it holds the key to unlocking the full measure of Nigeria’s industrial promise. It is the material expression of national strength.
“It builds our bridges, powers our industries, supports our defense, and lays the foundation for a modern economy. No nation has achieved true development without mastering steel! For decades, Nigeria has aspired to do so—but we have not yet succeeded.
“My administration is changing the narrative. It is with great optimism that I welcome you to this important gathering.
“A moment to reflect on the road we have traveled, acknowledge the challenges we have faced, and, above all, chart a bold new course for the future. Today, we turn our attention to a critical conversation, one that holds the potential to shape the future of our nation’s industrial landscape.”
Tinubu pointed out that the theme before us,” speaks not only to the challenges we currently face but also to the vast opportunities that lie ahead of us.
His words: “It invites us to pause and reflect, to question the status quo, and more importantly, to reimagine a future where Nigeria’s steel industry stands strong, competitive, and self-reliant. This is not merely a technical discussion, it is a national imperative.
“For in revitalising our steel sector, we ignite the very foundation upon which industrial growth, job creation, and sustainable development are built. The Ministry of Steel Development was created by my administration in August 2023 as part of the renewed hope for the industrialisation and economic diversification of the country underscoring the administration’s commitment to revitalising the steel sector.”
He explained that the ministry was responsible for formulating policies, promoting a competitive and innovative steel industry, facilitating access to essential infrastructure, and regulating the sector.
Tinubu added: “Despite our vast natural endowments in iron ore, limestone and coal, Nigeria imports over 90% of the steel it consumes.
“I stand before you today to declare that we will rethink, retool, and revitalise the Nigeria’s steel sector. Our vision is to transform Nigeria into a regional steel powerhouse, achieving self-sufficiency, generating employment, conserving foreign exchange, and building the industrial base that will drive our economy for generations to come.
“To actualise this vision, we have taken several steps to rejuvenate Nigeria’s Steel industry- a sector pivotal to the nation’s industrialisation and economic diversification.”
On his part, the minister, Shuaibu Audu, noted that revitalising local steel production would reduce Nigeria’s $4 billion annual import bill.
He detailed incentives to attract investors, including capital allowances, import duty exemptions, tax holidays, and policies ensuring 30 per cent of steel inputs for government projects are sourced locally.