FG to build metallurgical scrap across geopolitical zones

The Federal Government has unveiled plans to establish Metallurgical Scrap Collation Centres across Nigeria’s six geopolitical zones as part of its broader strategy to revitalize the steel industry, promote recycling, and drive sustainable economic growth.

The government stressed the capital-intensive nature of the steel sector and called on international development partners to provide technical expertise, financial investments, and strategic support to accelerate growth.

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, made this disclosure in Abuja during a strategic meeting with donor agencies, emphasizing that the initiative aligns with President Bola Ahmed Tinubu’s vision to strengthen Nigeria’s steel industry as a foundation for industrialization, infrastructure development, and job creation.

The Minister stressed the need for a strong legal and policy framework to support the steel sector’s expansion.
He noted that the Ministry of Steel Development is pushing for the passage of the Metallurgical Industry Bill, which will streamline regulations and create a more investment-friendly environment.

He said: “The steel industry is the backbone of industrialization and urban development; it lays the foundation for robust infrastructure and serves as a catalyst for job creation and sustainable economic growth.

“A central pillar of our priority is the revitalization of key publicly owned steel assets, most notably the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO).

“Our objective is to prepare these institutions for privatization by upgrading their infrastructure and operational capabilities, thereby transforming them into robust engines of local production. This initiative is designed to boost domestic steel output, reduce the nation’s dependence on imports, and generate valuable foreign exchange.

“Recognizing that technical prowess is as vital as physical infrastructure, we are placing significant emphasis on capacity development. We are establishing Metallurgical Scrap Collation Centres in each of the country’s six geopolitical zones, an initiative aimed at fostering recycling and ensuring a sustainable supply of raw materials.

“Concurrently, we are making substantial investments in human capital by upgrading the Metallurgical Training Institute in Onitsha. By integrating advanced training tools such as augmented reality solutions and simulation equipment, we are not only enhancing the skill set of our workforce but also preparing them to operate within a modern, technologically driven environment. These initiatives are critical for ensuring that our industry remains competitive and innovative in the face of evolving global standards.

“Transformation at an industrial scale necessitates a supportive regulatory framework. To this end, our Ministry is vigorously pursuing a series of policy and regulatory reforms designed to create a conducive environment for growth and investment. A key milestone in this journey is the imminent passage of the Metallurgical Industry Bill, which will provide a robust legal and regulatory foundation for the sector.”

He noted that the Ministry is implementing initiatives to support small and medium-sized enterprises (SMEs) in the metallurgy sector, ensuring that the benefits of industrial growth are equitably distributed across the economy. By fostering a dynamic and inclusive ecosystem, the government aims to leverage the steel industry’s potential to drive sustainable economic diversification and enhance the livelihoods of millions of Nigerians.

He added, “The Ministry’s 2025 capital budget has been meticulously crafted to reflect bold policy directions and priorities that will steer our nation towards a future of self-reliance, innovation, and prosperity.

“The budget embodies a clear vision, a vision in which the steel sector is transformed into a vibrant, competitive, and sustainable industry that fuels our economy, reduces our reliance on imported steel, and positions Nigeria as a key player in the global market.

“While our capital budget for 2025 reflects a bold and comprehensive strategy, we are not blind to the financial challenges involved. The transformation of a capital-intensive industry such as steel requires substantial financial resources, and the current funding gaps pose a significant hurdle. Additionally, achieving the full potential of these initiatives demands institutional reforms that extend beyond the purview of government efforts alone.”