KOLKATA – The Federal Government has signed a Memorandum of Understanding (MoU) with Indian firm Rashmi Metaliks Group for a $1 billion investment over three years, marking a major boost for Nigeria’s steel sector.
The Minister of Steel Development, Shuaibu Audu, led the Nigerian delegation and signed the agreement following a visit to the company’s facility in Kolkata. A statement on the development was released on Tuesday by Salamatu Jibaniya, the ministry’s Head of Press and Public Relations.
Mr Audu described the deal as a significant milestone in Nigeria’s drive to reposition the steel industry, accelerate industrial growth, generate employment, and conserve foreign exchange through strategic import substitution.
During a tour of the Rashmi Metaliks facility, the minister commended the scale of operations, the deployment of advanced technology, and the company’s integrated systems – which he said represented a model of efficiency and excellence in modern steel production. He noted that the facility’s efficiency underscored the importance of value addition, innovation, and sustainability.
The visit, he added, demonstrated efforts to strengthen economic ties between India and Nigeria in steel, mining, and manufacturing. He disclosed that Nigeria’s proactive investment drive had already attracted more than $2.2 billion in foreign direct investment.
According to Mr Audu, Nigeria is transitioning from a raw minerals exporter to a value-adding industrial economy, possessing over three billion tonnes of high-grade iron ore reserves.
“Some deposits grade as high as approximately 67 per cent iron content (Fe), while domestic steel consumption is estimated at about $10 billion annually,” he explained.
He said Nigeria aims to become a leading steel hub in Africa, targeting crude steel production of roughly 10 million tonnes per annum by 2030. The minister urged Indian investors to explore opportunities within Nigeria’s steel sector, assuring them of policy stability, fiscal incentives, and other reforms designed to protect their investments.
“We are open to credible investors willing to partner with us for mutual growth,” he said.
In response, Sunil Patwari, Vice Chairman of Rashmi Metaliks Group, acknowledged Nigeria’s determination to reposition its steel sector and called for sustained support to deliver the projects covered by the MoU.
The steel minister is also scheduled to hold talks with India’s Minister of Steel, Shri Kumaraswamy, to explore further areas of collaboration before returning to Nigeria.
(Report sourced from NAN)
