Alhaji Aliko Dangote, Africa’s richest man, has announced plans to venture into steel production with the goal of ensuring that all steel used in West Africa originates from Nigeria.
Dangote made this declaration during an interview at the Afreximbank Afro-Caribbean Trade & Investment Forum in Nassau, The Bahamas.
Following the completion of his refinery project, Dangote revealed that his next major enterprise would be in steel manufacturing. He emphasised his ambition to see Nigeria become the primary source of steel products for West Africa.
“We are not going to take any breaks,” Dangote stated. “Our goal is to make sure that every single piece of steel used in West Africa will come from Nigeria.”
Nigeria has a long history of attempting to establish itself as a leader in steel manufacturing, but numerous projects have failed to achieve success.
Notable among these are the Ajaokuta steel plant, Delta Steel Company, and the Osogbo and Jos rolling mills, which have struggled under both government and private ownership.
Dangote also urged African leaders to prioritise agriculture and solid mineral development, noting the high cost of food imports, which exacerbates unemployment and poverty across the continent. “We need to concentrate and pay more attention to agriculture and solid minerals. We should try to industrialise our continent and take it to the next level,” he said.
Despite these setbacks, efforts continue to revive the industry. The federal government has invested billions in local steel plants, often without success. The administration of President Bola Tinubu has pledged to kick-start steel production at the multi-billion-dollar Ajaokuta steel complex. In the 2024 budget, the government allocated approximately N4.45 billion for the plant, with hopes of raising an additional N35 billion from private investors.
Nigeria boasts significant iron-ore deposits, particularly in Kogi State, which is a critical raw material for steel production. With Dangote’s new initiative, there is renewed hope that Nigeria can harness its resources to become a major player in the steel industry, reducing import dependence and fostering economic growth in the region.
However, Shuaibu Audu, Minister of Steel Development, estimates that reviving the Ajaokuta plant could cost between $2 billion and $5 billion.
Nigeria’s steel industry holds significant potential. According to the National Steel Raw Materials Exploration Agency (NSRMEA), the country’s total steel consumption averages around 10 million metric tonnes annually, with 70% of this being imported.
Despite possessing around 74 steel plants and fabricators, Nigeria still spends approximately $4 billion on steel imports each year.
