Steel industry, not only in Nigeria but also for every nation is the critical element to their development. But in the Nigeria, the steel manufacturer threatened by smuggling and mobster for which developed government should be disquietedness. The reason of this is not because of the state government which has neglected the fey steel sector from long but because there are many parts in the country which imported steel illegal in the country with the small or no government intervention to this. Steel sector is the backbone of the economy for any nation but manufacturing. But one thing is that it cannot be as much important for manufacturing as well as not for the economy who takes real state seriously. But the fact is that steel is significant, fundamental and necessary material for the operation and process for many industries.
The smuggling business of the steel in Nigeria
We know that how much important is steel for the industry development as well as human daily life. A recent survey and revealing fact from the Galvanised Iron and steel manufacturer association of Nigeria said that our nation is significantly taking a loss approximate N53 Billion annually due to the smuggling of steel. On the basis of their survey and report there is a syndicate of saboteurs which imported $5 million of steel illegally to the Nigeria every week. This is a huge loss for the nation as well as for steel manufacturers and can leads to the 60% collapse of steel manufacturer in the country. Furthermore, if it is going to continuously happening in the country on this scale than it may leads to mass lay-off approx. 50,000 employees.
The reasons of the smuggling of steel
Obviously, the one thing which affecting the most and encouraging steel smuggling in the country because of the custom service which leave the pre-shipment inspection for the bootlegging and smuggling activities. Significantly this procedure ensures that the goods which are imported into the country have been meticulously examined during the entry.
Meanwhile, there is other fact which encouraging this black market that the imported steel is cheaper. Meanwhile, the government policies of the Nigeria for the steel sector are limiting their enormous promise. Apart from this, the high cost of the local steel as well as high tariffs which imposed by the government on the raw material which used for the manufacturing of steel affecting this sector and the reason of increase in demand of smuggling steel.
This is why steel industry in Nigeria crippled by the smuggling and crystallization of the numerous risked which are associated with the steel industry in Nigeria.