The Minister of Steel Development, Prince Shuaib Abubakar Audu, has described the operations of the African Natural Resources and Mines Limited (ANRML) as supportive of government’s goal to grow the Nigerian economy to over one trillion Dollar economy by 2030.
Audu, who spoke on Thursday during his one day working visit to the ANRML mining and processing plant, at Gujeni, Kagarko LGA, Kaduna State, encouraged the company to invest more in steel development in Nigeria while commending existing investments put at hundreds of million of Dollars and Euros already made by the company. ‘It dovetails into the renewed hope agenda of the administration of President Bola Ahmed Tinubu to grow the Nigerian economy to over $1trn by year 2030,’ he added.
The Minister, who was shown the mining and industrial facilities of the processing plant, together with the Indian High Commissioner to Nigeria, His Excellency Shri. G Balasubramanian, and Mr. A. A. S Oloyede who represented the Comptroller-General of Customs, Mr. Bashir Adewale Adeniyi expressed satisfaction with the operations, commended the company for producing steel for local consumption and export, stating that about ten thousand metric tons of ANRML products are exported to neighboring African countries including Senegal and Morocco, annually.
While saying that the mining and processing plant, which sits on over 900 hectares of land is amazing, he said: “I have gone around the various units of this facility and I believe that what we see on this factory supports the realization of the set goal,” adding that the African Industries Group (AIG) invested up to $600m in the mining and processing plant.
The minister, who said that the plant employs over 4000 people directly and indirectly, explained that the complex is for steel production, adding that steel is globally known as the catalyst for industrialization.
The minister expressed delight that the AIG Group currently employs over 10,000 people across its various plants in Nigeria, and has capacity to produce five million metric tons of steel and byproducts annually.
“Steel production is a very important component in the agenda of the administration of President Bola Tinubu,” the minister said, adding that the AIG is playing a very important role in taking Nigeria to the next level in that regard.
“I was pleased to know that the AIG have been in business in Nigeria since 1971, which is over 50 years ago. I commend the Group for believing in Nigeria and for helping us to create thousands of jobs.”
He commended the company for developing the Nigerian economy saying: “I learnt that some of the steel produced in this plant at Gujeni, is exported to neighboring African countries that need iron rods,”
“In this regard, it is good to congratulate the ANRML and its parent company, the AIG, for the ability to meet domestic need for steel while also supporting external demand for steel through export of the product.”
He encouraged the company to invest more in steel development in Nigeria toward reversing the nearly $4b meaning ten million metric tons of steel imported into Nigeria annually. “I want ANRML to reverse the huge steel import into Nigeria, this means they have to produce more steel and export the excess.”
He expressed the commitment of President Bola Ahmed Tinubu to turn around the steel sector, “including the revival of Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO), Itakpe,” stating that a lot more must be done.
I believe there is a lot that we can learn from what I have seen here today, especially things that can be applied to Ajaokuta Steel Company (ASCO), among which is our determination to set up an industrial park. I think we will work with ANRML to establish a free trade zone as a unit of the Industrial Park proposed, or even a CNG. The African Industries Group (AIG) has clearly demonstrated its expertise and I am convinced that the organization can play a role in meeting FG’s set goal of having over one million CNG vehicles on the roads by end of 2025.
I thank the Group and the Gupta family for making this investment in Nigeria. We call for more investment. I have personally seen the massive equipment here some of which are in tens of millions of Dollars and Euros.
“The African Industries Group must keep up the momentum. More can be done. We need more jobs in Nigeria. Presdent Tinubu says we must all play our roles to provide 80 milion jobs for Nigerians in 8 years. The ANRML and the entire AIG have a role to play and we must set new targets for them. Nigeria needs more FDI to ease the pressure on FX.”
Mr. Alok Gupta, Group Managing Director of the African Industries Group welcome the minister, the Indian High Commissioner to Nigeria, and the representative of the Comptroller – General of Customs, and other dignitaries.
While saying that steel is often called the backbone of modern industry, the Group Managing Director recalled that the Nigerian steel industry slowly evolved as a catalyst for its industrialisation in the late 20th century. According to the minister, “since early 2000, African Industries Group has been at the forefront of this revolution, committed to making Nigeria self-reliant for steel products and eliminating its dependence on imports.”
He said the Group established the first plant to manufacture steel products using ferrous scrap, adding that the Group has become a leading Iron and steel manufacturer with more than seven steel plants across Nigeria with a combined manufacturing capacity of 1.2 million tonnes per annum.
“We manufacture a wide range of products catering to the construction industry like TMT Rebars, Steel Angles, steel pipes, Square Rods, Binding Wires, Wire Mesh,” he added.
Alok Gupta said it is estimated that Nigeria is blessed with over 2 billion metric tons of iron ore reserves, noting that the Nigerian steel industry is evolving and well-placed to harness this wealth to enhance production capacity.
He stated: “I am very proud to present to this forum that African Natural Resources and Mines Limited (ANRML), a group company of African Industries Group as the first and only company in Nigeria to have successfully achieved backward integration in the steel industry.”
“Our iron ore mining and processing plant is Nigeria’s largest non-oil FDI. With a mining capacity of over 5 million tonnes per annum, the Direct Reduced Iron (DRI) produced here will be a direct substitute for ferrous scrap currently used as raw materials for producing steel in Nigeria.”
He said ANRML has created direct and indirect employment for up to 4,000 Nigerians and has invested in the development of the host community.
He expressed confidence in the Renewed Hope Agenda of the President Bola Ahmed Tinubu administration which he said, aims to enhance local production capabilities and integrate advanced technologies to make Nigeria a competitive steel producer on the international stage.
He pledged the support of the organization to the goal, saying: “I reaffirm our unwavering commitment to transform Nigeria from a net importer of steel to a net exporter, contributing to a favourable balance of trade,” Alok Gupta added.
He thanked the minister for his pledge to support indigenous steel companies, and expressed confidence in his ‘dynamic leadership,’ by which he said, Nigeria will revive the local Steel Sector.
“We stand by your commitment to revitalize the nation’s steel sector to meet both local and international consumption,” he added.
“ANRML imports a lot of spare parts and equipment, and I take this opportunity to earnestly thank the Nigerian Customs Service for their proactiveness in getting our consignments cleared. I call upon the Comptroller-General of Customs to extend further support for timely clearances.”
The Group Managing Director thanked the Indian High commissioner for his continued support and assistance in various consular related services.
Indian High Commissioner to Nigeria, Shri. G Balasubramanian disclosed that nearly 200 Indian companies with a sum of $27bn investment are currently operating in Nigeria, adding that the companies and investments is one of the strongest bonds between Nigeria and India.
He stated: “The Prime Minister of India, Narenda Modi has been very clear in identifying the requirements and priorities of Indian foreign policy in which he had clearly stated that investing in the African continent, particularly Nigeria, would be a major priority of his government.”
The High Commissioner commended the Gupta family for the investment, saying that the home government is proud of its giant strides: “The Government of India is happy and proud of the Gupta family as part of our heritage in Nigeria. I have gone around the mining area and factory, and it is very gratifying to see the contributions that have been made in terms of money that Mr. Gupta has invested, and the technology that is in use at the ANRML integrated steel complex,” he added.
He explained that the bilateral cooperation on trade between the two countries is remarkable, adding that a large number of Indian and Nigerian experts are working at the ANRML complex which has created jobs in excess of four thousand.
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