The Federal Government has announced plans to leverage fiscal incentives to stimulate local steel production, aimed at accelerating the country’s industrial growth and $1 trillion economy target.
Shuaibu Audu, Minister of Steel Development, who made this known during the inauguration of the 50,000 metric tons per annum state-of-the-art Orbit Galvanized Steel Industries Plant in Ikorodu – Lagos on Tuesday, said the proposed fiscal incentives for local steel production would give a huge fillip to the Nigerian manufacturing sector.
Audu noted that the fiscal incentives would be included in the proposed metallurgical industry bill, which is before the National Assembly.
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He reiterated the Federal Government’s commitment to creating an enabling environment for the private sector investors to thrive, adding that the Government would continue to enact laws and regulations that would drive investments in the economy.
According to the minister, the coming onstream of the galvanized steel plant would create opportunities for the country to drive its industrialisation, create employment and boost manufacturing contribution to GDP.
“Steel is the bedrock of industrialisation and with a plant like this, it would help the President Bola Tinubu’s administration in terms of achieving its objective to grow the Nigerian economy to $1 trillion by 2030,” he said.
The minister said that Nigeria spent $4 billion yearly on steel importation, a trend he emphasized that the country must reverse to reduce FX pressure.
He commended Orbit Galvanized Steel Industries (OGSIL) – a subsidiary of African Industries Group (AIG) for their investments in local galvanized steel and their industry leadership.
“This plant which is a pioneer achievement of AIG in the galvanizing subsector has further reinforced the group’s commitment to invest in the Nigerian steel sector,” the minister said.
“With a focus on local manufacturing of different steel products through backward integration for the overall benefit of this country,” he explained, adding that the galvanized plant would help save the country’s foreign exchange.
Audu noted that galvanized steel products are essential in building infrastructure facilities such as telecommunication towers, electricity pylons, cable trays, and applications in the oil and gas industry.
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He noted that the project is a testament to the efforts of the Tinubu administration to rejuvenate the country’s steel sector.
Speaking also, Uche Iwuamadi, a barrister and executive director at African Industries Group, said that the group which started as a trading company in the country 54 years ago had grown into a conglomerate with 11 business verticals and 35 manufacturing units, with total investments exceeding $2.1 billion.
Iwuamadi said the galvanized steel plant is a state-of-the-art fabrication and hot dip galvanizing facility and one of the best in Africa.
