A steel expert, Anthony Madagua, has identified the shortage of scrap metal as one of the biggest obstacles to sustainable steel production and the manufacture of affordable, high quality steel products in Nigeria.
According to the News Agency of Nigeria (NAN), Madagua made the remarks in an interview on Wednesday in Abuja, where he described scrap as a critical raw material for steel production.
He said Nigeria’s steel industry had yet to fully align with globally accepted production standards and continued to grapple with challenges including inadequate scrap availability, poor logistics and unreliable energy supply.
“Scrap availability continues to be a major challenge to sustainable steel production and affordable quality steel products.
“Scrap aggregation should be regulated to some extent. But, most importantly, scrap generation strategies already being discussed by the Ministry of Steel Development should be embarked upon and accelerated,” he said.
Madagua noted that a strong steel industry was essential for the industrialisation of any nation, adding that no country had achieved sustainable industrial development without a vibrant steel sector.
He expressed concern that despite Nigeria’s abundant iron ore deposits and other mineral resources, the country still imports steel products valued at about four billion dollars annually.
The expert urged the Federal Government to strengthen partnerships with ECOWAS member states and other African countries to maximise opportunities under the African Continental Free Trade Area (AfCFTA).
He also recommended collaboration with Guinea to process iron ore from the Simandou mine into finished steel products for African markets.
“The Simandou Iron Ore Mine in Guinea is one of the largest high grade iron ore deposits and presently exports to China, which now brings it back to Africa, including Nigeria, as finished products.
“Such partnerships will reduce dependence on imports and improve Africa’s competitiveness in steel production,” he said.
Madagua identified poor infrastructure, unreliable electricity supply and quality control challenges as additional factors limiting the growth of Nigeria’s steel industry.
He called for the upgrade of existing steel technologies, expansion of gas powered electricity for industrial clusters and improved rail infrastructure to facilitate the transportation of raw materials.
The expert also advocated the revival and full operationalisation of the integrated steel plants at Ajaokuta and Aladja, describing them as the foundation of Nigeria’s steel industry.
He added that reviving the inland rolling mills in Jos, Katsina and Osogbo would ensure a steady supply of wire coils and other raw materials needed by micro, small and medium enterprises engaged in steel processing.
According to him, increased local production of these raw materials would improve competitiveness and reduce the challenges faced by downstream manufacturers producing items such as nails, wire gauze and binding wire.
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