The Federal Government of Nigeria has signed a $1 billion investment agreement with India-based Rashmi Metaliks Group aimed at strengthening domestic steel production, reducing import dependency, and expanding industrial capacity across the country’s steel value chain.
The agreement was formalised through a Memorandum of Understanding (MoU) signed by the Minister of Steel Development, Shuaibu Abubakar Audu, during an official visit to India, where discussions focused on long-term industrial collaboration and technology transfer.
The Ministry of Steel Development confirmed the development in a statement issued by its Head of Press and Public Relations, Salamatu Jibaniya, noting that the partnership represents a major step in Nigeria’s broader industrialisation agenda.
Brandspur Industrial and Investment News Desk reports that the deal is expected to run over a three-year period and will cover investments in steel production, processing systems, and supporting infrastructure across the sector.
During the visit, the minister also inspected Rashmi Metaliks’ production facility in Kolkata, where he highlighted the company’s integrated manufacturing system and advanced technology as a potential benchmark for Nigeria’s steel industry development.
Nigeria currently holds over three billion tonnes of iron ore reserves, including significant high-grade deposits, yet continues to rely heavily on imported steel products to meet domestic demand.
Despite this resource advantage, the country’s annual steel consumption is estimated at around $10 billion, driven largely by demand from construction, automotive, telecommunications, and defence sectors.
The new investment is expected to support job creation, enhance local processing capacity, facilitate technology transfer, and reduce Nigeria’s heavy dependence on imported steel materials.
The Federal Government also linked the agreement to its broader economic reform strategy, which prioritises foreign direct investment, industrial expansion, and value-chain development under its national growth agenda.
Additional policy reforms in the automotive and recycling sectors are also expected to complement the steel industry, including the End-of-Life Vehicle policy and the Vehicle Conformity Assessment Programme.
These initiatives are designed to increase scrap metal supply through vehicle recycling while restricting substandard imports, thereby strengthening demand for locally produced steel inputs.
Government officials say the combined effect of these measures will support backward integration, improve industrial efficiency, and enhance Nigeria’s competitiveness in the global steel market.
However, Nigeria’s longstanding challenge of reviving local steel production, including the stalled Ajaokuta Steel Complex, continues to underscore the difficulty of achieving full industrial self-sufficiency despite repeated policy commitments.
