…As Steel Sector Attracts Over $2.2bn FDI Under President Bola Ahmed Tinubu’s Renewed Hope Agenda
Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, has signed a memorandum of understanding (MoU) with the Indian conglomerate, Rashmi Metaliks Group for a projected investment of $1 billion over a three-year period.
The MoU was signed in Kolkata, India, on Tuesday.
While touring the Rashmi Metaliks Steel Plant in Kolkata, Prince Audu commended the scale of operations and advanced technology deployed at the facility. He also lauded the company’s integrated operations — spanning Direct Reduced Iron (DRI), pig iron, billets and finished ductile iron pipes — describing them as a strong example of industrial efficiency and excellence in modern steel production.
According to the Minister, Nigeria’s proactive investment drive is already attracting significant global capital. He noted that the MoU signed with Rashmi Metaliks Group represents a major milestone in Nigeria’s efforts to reposition its steel sector, reaffirming President Bola Ahmed Tinubu’s commitment to revitalizing the industry, creating employment opportunities and conserving foreign exchange through strategic import substitution.
He added that the efficiency of the facility underscores the importance of value addition, innovation and sustainability in modern steel production, emphasizing that the visit further reflects the strengthening economic ties between Nigeria and India in the areas of steel, mining and manufacturing.
Signing the MoU, Minister Audu highlighted Nigeria’s vast steel potential, noting that the country is transitioning from a raw minerals exporter to a value-adding industrial economy. He disclosed that Nigeria possesses well over three billion tonnes of iron ore reserves, with some deposits grading as high as approximately 67 percent iron content (Fe), while domestic steel consumption is estimated at about $10 billion annually.
He said that Nigeria aims to become a leading steel hub in Africa under President Bola Ahmed Tinubu’s Renewed Hope Agenda, targeting crude steel production of approximately 10 million tonnes per annum by 2030. Recent Foreign Direct Investments in the sector include a $400 million Stellar Steel plant in Ewekoro, Ogun State — a Chinese-Nigerian joint venture for a modern hot-rolled coil steel plant scheduled to commence operations by November 2026.
Also, African Industries Group (AIG) is completing a fully integrated iron-and-steel plant at Gujeni in Kaduna State. The company has invested $300 million in the Direct Reduced Iron (DRI) and steel unit of the project, as well as its galvanising and fabrication plant in Ikorodu, Lagos, which was recently commissioned by the Minister.
Energy infrastructure is also being developed to support the growth of the industry. The Nigerian National Petroleum Company Limited (NNPC), the Ministry of Steel Development and their partners recently broke ground on five mini-LNG plants in Ajaokuta, Kogi State — a $500 million project aimed at boosting gas supply to the steel industry, with a combined capacity of approximately 97 million standard cubic feet per day.
Minister Audu used the visit to invite additional Indian investors to explore opportunities within Nigeria’s steel sector. He highlighted prospects for establishing integrated steel plants in Nigeria, deploying Direct Reduced Iron and electric-arc furnace technologies, and developing full value chains for automotive, construction and infrastructure steel.
He further assured prospective investors that the Nigerian Government remains committed to providing an enabling environment through policy stability, fiscal incentives and ongoing ease-of-doing-business reforms aimed at protecting investments.
“We are open to credible investors willing to partner with us for mutual growth,” the Minister said.
The Vice Chairman of Rashmi Metaliks Group, Mr. Sunil Kumar Patwari, on behalf of the company, expressed appreciation to the Nigerian delegation for the successful visit to their facilities in Kolkata. He emphasized that the visit reflects the priority placed on the partnership by the Nigerian Government and assured that, with the necessary support from the government, Rashmi Group is committed to delivering on the projects envisioned in the MoU.
The delegation was led by the Minister, alongside Directors from the Ministry and officials of the Nigerian High Commission in New Delhi, led by the Acting High Commissioner, Ambassador Ubong Akpan Johnny.
Prince Audu is also scheduled to engage with his counterpart, the Indian Minister of Steel, Shri H. D. Kumaraswamy, on Thursday, 16 April 2026, to explore areas of mutual collaboration between the two countries in the steel sector before returning to Nigeria.
