Nigerian steel mills going obsolete
- Private sector invests $500m in new mills
Sopuruchi Onwuka
The Nigerian steel industry can only thrive in the private sector, after initial government investments have gone moribund and technologically obsolete.
However, the Organized Private Sector of the Nigerian economy has already staked over $500 million investments in new mills in attempt to recover the sector.
The issue of steel development took a pre-event focus at the ongoing Practical Nigerian Content (PNC) hosted by the Nigerian Content Development and Monitoring Board (NCDMB) at Uyo, Akwa Ibom State, where the petroleum industry and allied sectors explore policy and strategy options in displacing importation of critical industry consumables with local alternatives.
At the prompting of the event anchor, Mr Richmond Osuji, who was stimulating thoughts ahead of the main sessions, a representative of the OPS in the hall declared that private investments in the country’s steel development has surpassed $500 million.
Chairman of the Local Content Group of the Manufacturers Association of Nigeria (MAN), Mr Vassily Oye Barberopoulos, made it clear that it no longer makes commercial sense to maintain focus on privatization of existing steel companies like Ajaokuta Steel Complex.
Mr Barberopoulos who is also the Managing Director of Nigerian Foundries Group said the technology driving public enterprises in steel production in Nigeria has gone obsolete and might not command attraction of private capital.
He said manufacturers in Nigeria are staking private capital and new technology in steel and solid minerals development.
According to him, new production capacity for good grade of steel exists in the country, adding that gold development is also receiving significant private investments.
He noted that privatization of the government steel Mills no longer dominate private sector attention.
He called on the government and industry players to continue to match investments with prevailing technology in order to align with global quality trends.
Mr Barberopoulos said the quality of steel being produced in the country has not reached optimum grade but good for meeting immediate needs for construction rods.
With private investments in gold, he pointed out, Nigeria is moving the solid minerals sector into a viable pedestal “just as you have in Ghanaian gold mines.”
Mr Barberopoulos declined comments on privatization of the Nigerian steel plants, describing the topic as political.
The issue of steel development, he said, is central to Nigerian Content development in the industrial sector.
He added that the steel produced in the country hold the right level of quality to meet internal demand for industrial activities.
The Oracle Today reports that the annual Practical Nigerian Content conference is hosted by the Nigerian Content Development and Monitoring Board (NCDMB) as veritable strategy platform for pan-industry collaboration in displacing imported goods and services with local capacity used in the several sectors of the economy.
