The Federal Government has inked a $1 billion investment deal, signing a Memorandum of Understanding (MoU) with an Indian conglomerate, Rashmi Metaliks Group. The agreement, signed on Tuesday in Kolkata, was for a projected investment of $1 billion over three years.
This followed a tour of the steel plant in Kolkata by the Minister of Steel, Shuaibu Audu, where he commended the scale of the operations and advanced technology deployed at the facility. He also lauded the company’s integrated operations — spanning Direct Reduced Iron (DRI), pig iron, billets, and finished ductile iron pipes — describing them as a strong example of industrial efficiency and excellence in modern steel production.
According to the minister, Nigeria’s proactive investment drive is already attracting significant global capital. He noted that the MoU signed with the company represents a major milestone in Nigeria’s efforts to reposition the steel sector, reaffirming President Bola Tinubu’s commitment to revitalising the industry, creating employment opportunities, and conserving foreign exchange through strategic import substitution.
He added that the efficiency of the facility underscored the importance of value addition, innovation, and sustainability in modern steel production, emphasising that the visit further reflected the strengthening economic ties between Nigeria and India in the areas of steel, mining, and manufacturing.
In signing the MoU, Audu highlighted Nigeria’s vast steel potential, noting that the country was transitioning from a raw minerals exporter to a value-adding industrial economy. He disclosed that Nigeria possesses well over 3 billion tonnes of iron ore reserves, with some deposits grading as high as approximately 67 per cent iron content (Fe), while domestic steel consumption is estimated at about $10 billion annually.
He said that Nigeria aims to become a leading steel hub in Africa under President Tinubu’s Renewed Hope Agenda, which targets crude steel production of approximately 10 million tonnes per annum by 2030. According to a statement signed by the minister’s media aide, Lizzy Okoji, recent Foreign Direct Investments in the sector include – a $400 million Stellar Steel plant in Ewekoro, Ogun State — a Chinese-Nigerian joint venture for a modern hot-rolled coil steel plant scheduled to commence operations by November 2026.
The ministry said that African Industries Group (AIG) is completing a fully integrated iron-and-steel plant at Gujeni in Kaduna State.