The Federal Government has entered into a Memorandum of Understanding (MoU) with India’s Rashmi Metaliks Group for a $1 billion investment aimed at expanding Nigeria’s steel production capacity over the next three years.
The agreement was signed in Kolkata following a visit by Nigeria’s Minister of Steel Development, Prince Shuaibu Audu, who led a government delegation to the company’s facilities.
According to a statement on Tuesday from the ministry’s Head of Press and Public Relations, Salamatu Jibaniya, the deal forms part of efforts to reposition Nigeria’s steel industry, strengthen industrial growth, and reduce reliance on imports through local production.
During the visit, Audu described the partnership as a key milestone in Nigeria’s industrial transformation agenda.
He commended the scale of Rashmi Metaliks’ operations, noting that its advanced technology and integrated systems represent global standards in efficient steel production.
He added that the engagement reflects Nigeria’s broader strategy to deepen economic ties with India in steel, mining, and manufacturing, stressing that ongoing reforms have already attracted over $2.2 billion in foreign direct investment.
According to him, Nigeria is gradually shifting from being a raw materials exporter to a value-added industrial economy, pointing out that the country holds more than three billion tonnes of high-grade iron ore reserves.
“Some deposits grading as high as approximately 67 per cent iron content (Fe), while domestic steel consumption is estimated at about $10 billion dollars annually,” he said.
Audu also stated that Nigeria’s long-term goal is to become a leading steel hub in Africa, with a target of producing about 10 million tonnes of crude steel annually by 2030.
He assured potential investors of a stable policy environment, fiscal incentives, and ongoing reforms designed to safeguard investments and encourage participation in the sector.
“We are open to credible investors willing to partner with us for mutual growth,” he said.
On his part, Vice Chairman of Rashmi Metaliks Group, Mr Sunil Patwari, acknowledged Nigeria’s commitment to revitalising its steel industry, while calling for strong government support to ensure smooth implementation of the agreed projects.
The minister is also expected to hold further talks with India’s Minister of Steel, Shri Kumaraswamy, to deepen bilateral cooperation in the sector before returning to Nigeria.
