The Nigerian Government has announced plans to manufacture military hardware at Ajaokuta Steel Company as part of a broader effort to establish a military-industrial complex in Nigeria.
Minister of Steel Development, Shuaibu Abubakar-Audu, disclosed this on Thursday during a visit to the National Steel Raw Materials Exploration Agency in Kaduna.
He revealed that the ministry is partnering with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to supply military equipment to the Nigerian Armed Forces and security agencies.
A Memorandum of Understanding (MoU) has already been drafted and shared with DICON, pending presidential approval.
Audu emphasised that reviving Ajaokuta Steel Company is a key objective of President Bola Tinubu’s administration.
Beyond military production, the minister highlighted Nigeria’s reliance on steel imports, which cost the country about $4 billion annually
He stressed the need for import substitution to ease foreign exchange pressure and boost local production.
Audu described the steel sector as crucial to the government’s plan to grow Nigeria’s economy to $1 trillion by 2030.
He also announced plans to organise Nigeria’s first steel summit to develop a comprehensive roadmap for the industry’s growth.
Meanwhile, he revealed that the Metallurgical Industry Bill, which aims to regulate the sector, has passed its second reading in the House of Representatives.
The Federal Government is also attracting foreign investments, with a Chinese company, Galaxy, committing $300 million to a steel plant in Ogun State.
Despite the steel sector’s decades-long struggles, Audu expressed optimism that ongoing reforms would revive the industry, aiming to produce 10 million metric tonnes of steel annually within the next five years.
