How we’ll grow Nigeria’s steel sector ---Fayemi
(Nigeria) To fund the infrastructure needs of its growing economy over the next 30 years, Nigeria would spend about $3 trillion.
Minister of Solid Minerals Development, Dr Kayode Fayemi,
disclosed this on Thursday in London, United Kingdom, at a business forum
organised by the Royal African Society.
Quoting a recent report by the National Integrated
Infrastructure Master Plan, he said Nigeria’s current core infrastructure
stocks gap, based on international benchmarks, is estimated at $80 billion.
Fayemi who presented a keynote address titled : “Mining for Prosperity: fueling Nigeria’s
industrialisation in the 21st Century”, said the investment would allow Nigeria to close its current
infrastructure gap and sustain an ideal infrastructure stock level of 70 per
cent of GDP and build infrastructure assets across the seven critical
sectors- roads, rail, ports, airports,
power, water and ICT.
He said iron ore and steel would account for the bulk of
materials inputs needed to industrialise Nigeria, just as he urged investors to
take advantage of the country’s huge steel market.
The Minister said “We project a steady increase in domestic
demand for steel in Nigeria in the coming decade, driven by increased
industrialisation that will ignite a surge in building construction, power,
automotive construction, agriculture, road and bridge building, military
technology and infrastructure development, refinery investments and other heavy
duty machinery.
“This ever-widening vortex of hunger for steel and iron ore
is an opportunity for local and international investors to participate in the
consolidation and expansion of Africa’s largest economy.”
He added that local producers are currently meeting just
about 25 per cent of demand in the sub-sector, a development he said provides
the required optimism for foreign investors.
Fayemi hailed the success recorded in the limestone, where
Nigeria moved from being a net-importer of cement to a net-exporter in less
than a decade of putting in place the right policy and necessary incentives for
local manufacturers.
“We are working with all stakeholders in the industry to
encourage replication of the limestone success story in the beneficiation of
other industrial minerals, towards powering the industrialisation of the
country.
“Our aspiration is to build a world class minerals and
mining ecosystem designed to serve a targeted domestic and export market for
minerals and ores.”, he added.
The Minister said the country would focus on minerals , mining and related processing
industry over a three -phased period to achieve this.
“Phase 1: Nigeria will seek to rebuild market confidence in
its minerals and mining sector and win over domestic users of industrial
minerals that currently import. During this Phase, Nigeria will also seek to
expand use of its energy minerals. This phase will likely last about 2 – 3
years.
“Phase 2: Nigeria
will focus on expanding our domestic ore and mineral asset processing industry.
This phase will last about five to 10 years.
“Phase 3: Nigeria should seek to return to global ore and
mineral markets at a market competitive price point. We expect this to coincide
with the next commodity upswing.”
Speaking further, Fayemi said should Nigeria successfully
follow through with the implementation plans, growth is expected to return to
the sector in the form of new exploration activity, operations and production
from active mining, functional (and expanded) processing and refining capacity,
and higher value-addition in exports.
“ The net outcome will be the creation of thousands of
direct jobs and potentially hundreds of thousands of indirect jobs.”
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