1. Most Discussed
  2. Gainers & Losers
KFE 17.0¢

Nigeria: Enhancing Capacity Utilization in Steel Industry

  1. livas1

    3,591 Posts.
    101
    Nigeria: Enhancing Capacity Utilization in Steel Industry

    By Phillip Oladunjoye
    Lagos — The Nigeria Industrial Revolution Plan (NIRP) seems to be achieving the desired result in the steel sub sector of the economy.
    This is exemplified recently when the Federal Government commissioned a N60 billion integrated steel mill built by the Standard Metallurgical Company (SMC) in Shagamu, Ogun State.
    The minister of Industry, Trade and Investment, Mr. Olusegun Aganga, who commissioned the mill, said government was committed to repositioning the steel sector to access a substantial share of the global wealth estimated at $10 trillion.
    He said that with the implementation of the right sectoral policies under the Nigeria Industrial Revolution Plan (NIRP), the number of functioning steel rolling mills in Nigeria had increased to over 21 currently, from less than five a few years ago.
    "Before this administration came on board, we had less than five functioning steel rolling mills and no cold rolled steel mill but today there are more than 15 functioning steel rolling mills producing reinforced bars; about three functioning cold rolled steel mills producing cold rolled flat sheets; and about three producing or about to commence the production of wire coils. This is visible evidence that our policies are working," Aganga said.
    According to him, steel is at the heart of any country's economic development and is one of the most important materials widely used for both domestic and industrial purposes throughout the world, hence the priority given to the sector in the NIRP.
    He said, "In addition to accelerating the industrial development of a nation, a vibrant steel sector contributes to the growth of the gross domestic product and exploitation of Nigeria's abundant natural resources. A vibrant steel sector also generates economic activities in downstream industries, creates job opportunities and acquisition of technical skills, and helps in the transfer of technology and provision of machine parts and tools. This particular project is being executed with 100 per cent locally-sourced raw materials."
    He noted that the establishment of the phase I of the SMC steel mill and the ground breaking of the phase II of the project would complement the company's existing investments in the agri-business subsector of the country, pointing out that the mill ranked among the largest private sector investments in the steel sector in Nigeria.
    Aganga said, "I am assuring existing investors like the SMC, and prospective ones, of government's support in the pursuit of self-sufficiency in local steel production. The implementation of game changers in the sector is already opening up a lot of downstream sector activities with the attendant massive job opportunities and economic empowerment for our engineers, technicians, artisans and fabricators alike."
    The Minister of Mines and Steel Development, Architect Musa Sada, reiterated the Federal Government's commitment to creating an enabling environment for the mines and steel sector to thrive.
    "The Ministry of Mines and Steel Development is collaborating with key stakeholders to ensure proper development of the sector. I would urge investors to take full advantage of Nigeria's enabling environment to explore the abundant natural resources in Nigeria for collective gains," the minister said.
    The Managing Director of SMC, Dr. Mohammed Saade, commended the Federal Government for supporting the steel sector, noting that the entire project would aid the Transformation Agenda of the current administration, while boosting growth.
    "SMC Steel Rolling Mill has a multi-phased Integrated Iron and Steel Complex with an estimated annual capacity production of two million tons of long and flat steel finished products, which is being executed in multi-phases over a 10-year implementation programme. The project is being executed with 100 per cent raw materials from Nigeria," he said.
    As laudable as this achievement is, stakeholders in the steel sector are still of the opinion that more needs to be done to fully tap the potential in the sector

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.