18 rolling mills operational in Nigeria, says Osinbajo
*Govt committed to reviving Ajaokuta steel plant
Vice President Yemi Osinbajo said yesterday that 18 of the 30 steel rolling mills in Nigeria are operational, producing 2.8 million metric tonnes per annum from melting scraps. He added that the 30 existing steel rolling mills produced about 6.5 million metric tonnes per annum.
Osinbajo spoke at Gimba-Oja, Ifelodun Local Government Area of Kwara State at the foundation ceremony of Kam Integrated Steel Project. He added that the world steel, the global iron and steel estimated demand is worth $ 9.6 trillion per annum.
The vice president said: "Within the next few years, Nigeria will be importing approximately 250 million tonnes of processed steel and aluminum products and associated derivatives per annum at the cost of $45.5 billion. All this can be saved.
"Nigeria is the 12 largest iron ore resource nation in the world and second largest in Africa with N2 billion metric tonnes of iron ore reserves. "However, 70 per cent of this deposit is yet to be made towards the bankable products of these industries and appropriate financing.
"The government is well aware of this issue and looking at the options to resolve this challenge, including synergising government capacity and private sector competences for certifying existing deposits."
He added: "At the current rate of consumption, given the demand of steel builders, especially construction companies, automotive assembly, owners of refineries, investors in tile and rubber plastics and projects and textiles, the steel needs of this country are immense.
"We must be extremely ambitious in our industrialisation effort in this area. Indeed, the need for increased levels of investment in these areas has never been more demanding than this time, steel plays pivotal roles in the industrialisation and infrastructure plan of the Federal Government.
"This administration is committed to fast-tracking Nigerian industrialisation and committed to ensuring that there is a conducive environment not just for industrialists but in particular for the steel industry."
The vice president said the Federal Government would encourage investors like Kam Industries to participate in the country's industrialisation efforts and to ensure that Nigeria become sufficient in steel products within the shortest possible time.
"We have found that one of the ways to achieve this goal is by making Nigeria more business-friendly and attracting local and foreign investment, thereby creating much needed jobs," he said.
for Solid Minerals Development Dr. Kayode Fayemi said President Muhammadu Buhari's administration was committed to the revival of Ajaokuta Steel Plant.
Fayemi said: "The presence of the vice president is a demonstration of the government's commitment to an economic diversification strategy. This enabling environment is what has given Kam Industries the muscle to do this project.
"Two weeks ago, I was in Okpella in Edo State for a similar foundation-laying ceremony, where the Dangote Group was also putting on the ground a billion dollar cement factory and that clearly shows that the policy thrust of Kam is mirroring what this government is all about.
"We want to ensure that we achieve the backward integration that you highlighted in your policy thrust. We are committed to ensuring to put in place import substitution that will reduce the foreign exchange expenditure of the country on import.
"We are also committed to ensuring that we revive the Ajaokuta Steel Plant and we want to work with you in achieving all of these objectives."
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