The Federal Government has secured a $1bn steel investment deal in Kolkata, as foreign direct investment in Nigeria’s steel sector surpasses $2.2bn under the administration of Bola Tinubu.
The agreement was signed on Tuesday by the Minister of Steel Development, Shuaibu Abubakar Audu, and India’s Rashmi Metaliks Group. The Memorandum of Understanding outlines a three-year investment plan aimed at boosting Nigeria’s industrial capacity.
The deal followed a tour of the company’s integrated steel facility, where the Nigerian delegation observed operations covering Direct Reduced Iron, pig iron, billets, and ductile iron pipe production. Officials described the visit as an opportunity to understudy advanced steel manufacturing processes and industrial efficiency.
According to a statement from the ministry, the agreement represents a significant step in Nigeria’s push to revitalise its steel industry and attract large-scale foreign investment. Audu said the deal reflects growing global confidence in Nigeria’s economic reforms and industrial potential.
He noted that the partnership aligns with the government’s strategy to reposition the steel sector, create jobs, and reduce dependence on imports through local production. The minister added that the initiative is part of broader efforts to attract technology-driven investments into Nigeria’s manufacturing base.
Audu emphasised that Nigeria is moving away from being a raw material exporter toward a value-adding industrial economy, leveraging its vast mineral resources. He highlighted the country’s estimated three billion tonnes of iron ore reserves, with some deposits containing up to 67 per cent iron content.
Despite this resource base, he said Nigeria still relies heavily on imported steel, with annual domestic consumption estimated at about $10bn. He described this gap as an opportunity for local production to expand and meet rising demand.
The agreement also signals strengthening economic ties between Nigeria and India, particularly in steel, mining, and manufacturing.
Officials say the investment is expected to accelerate industrialisation, support job creation, and enhance Nigeria’s self-sufficiency in steel production.
