Across the world steel industry continuing grow annually. China is the large steel producer in the world. New technology and diverse type of steel product has been the reason of the demand as well as become the prime material for the industries over time. Its increasing demand has given the opportunity to for the various businesses to establish their market and brand name in the market. Nigeria is producing steel .11% of the total global steel, on the other side, the mining and minerals contribution in the Nigeria GDP is 0.3%. At present, an Australian company is going to invest in Nigeria steel industry in 2020 and become the first Nigeria integrated steel producer. Nigeria federation is looking to develop vibrant evidently.
At the 4th International conference and Exhibition steel expo 2019 which held in India, the Nigeria delegations has said that we are aware of the role that steel plays for creating a foundation for Nigeria’s industrialization. This conference is giving us the opportunity for sharing our potential with the world. At the present, Nigeria has its proven reserve with the estimate of iron ore which stands for the 2542 Million tonnes along with average quality of 36% iron content.
The perspective of Nigeria Steel Industry
At present, the Nigeria steel industry is producing steel from scrap steel over 90%. But the thing is that Nigeria has huge and enough iron ore deposit and constantly focusing on the development of the mining sector because of it. Nigeria has the approx. 40-43 well established steel plant as well as fabricating outfits in the value chain. In fact, approx. 90% of them are operating downstream sector. Significantly, Indian industries which are established in Nigeria is a very reliable on this sector which are very imperative for us.
In addition, According to the International Trade Center report with a negative trade balance of $1.27 billion in the year 2018 as Nigeria has imported the steel.Meanwhile, the steel industry in Nigeria establishing the relation and function between the steel sector and encouraging industries for the rapid growth in the steel industry as well as in other metal production and consumption industries.
Nigerian Steel sector Opportunities and Objectives
In Nigeria, government plan to increase the total present mining sector which contributes the total 0.3% to the 15% of GDP by the 2025 as well as targeting the steel consumption per capita from 10kg to 40kg by the year. At present, Nigeria steel sector has enormous potential for both upstream and downstream and capable enough to share it at the global scale. There are two main sectors in Nigeria that have required the steel on the large amount which is the Oil and Gas sector and the Construction sector.
This is how steel industry works in the Nigeria.