Nigeria has signed a $1 billion Memorandum of Understanding (MoU) with India’s Rashmi Metaliks Group to boost local steel production, marking a major step in the country’s drive to industrialise and reduce import dependence.

Minister of Steel Development, Prince Shuaibu Abubakar Audu, formalised the agreement during an official visit to the company’s steel plant in Kolkata, India, where he lauded its advanced technology and integrated production system.

Audu described the deal as a significant milestone under President Bola Ahmed Tinubu’s Renewed Hope Agenda, noting that it would enhance job creation, deepen value addition, and conserve foreign exchange.

He disclosed that Nigeria’s steel sector has already attracted about $2.2 billion in foreign direct investment, driven by ongoing reforms aimed at repositioning the industry for global competitiveness.

According to the minister, Nigeria is transitioning from a raw materials exporter to a value-driven industrial economy, leveraging its estimated 3 billion tonnes of iron ore reserves—some with iron content as high as 67 per cent.

He added that the country aims to become a leading steel hub in Africa, targeting annual crude steel production of 10 million tonnes by 2030.

Highlighting ongoing investments, Audu said a $400 million Stellar Steel plant is under development in Ewekoro, Ogun State, while African Industries Group is nearing completion of a fully integrated iron and steel plant in Kaduna State.

To support the sector, the Nigerian National Petroleum Company Limited (NNPC), in partnership with the Ministry of Steel Development, has also launched a $500 million mini-liquefied natural gas (LNG) project in Ajaokuta, Kogi State. The initiative is expected to improve gas supply to steel plants and enhance production capacity.

Audu emphasised that Nigeria’s domestic steel demand is estimated at $10 billion annually, presenting vast opportunities for investors across the value chain, including automotive, construction, and infrastructure development.

He assured potential investors of the Federal Government’s commitment to policy stability, fiscal incentives, and ease-of-doing-business reforms to safeguard investments.

“We are open to credible investors willing to partner with us for mutual growth,” he said.

In his remarks, Vice Chairman of Rashmi Metaliks Group, Sunil Kumar Patwari, expressed confidence in the partnership and pledged the company’s commitment to delivering on the agreed projects.

He noted that the engagement reflects the Nigerian government’s seriousness in attracting global investors and strengthening bilateral ties with India.

The minister is also expected to hold further discussions with India’s Minister of Steel, Shri H. D. Kumaraswamy, to explore additional areas of collaboration before concluding his visit.