Alhaji Aliko Dangote, foremost industrialist and African richest man has made known his new and next business adventure: fixing the steel industry in Africa. The business mogul disclosed this during an interview at the just concluded Afreximbank’s Annual Meetings in Bahamas.
“We are not going to take any break after the success of the Petroleum Refinery, what we are trying to do, is to at least in West Africa, we want to make sure that every single steel that we use comes from Nigeria”, he declared on the sideline of the program.
The chairman of Dangote Group added that the population of Africa, estimated at about 1.4 billion people present a unique, incredible untapped opportunities for businesses to thrive. “So, what we need, that is missing, is actually to pay more attention to Agriculture, and Solid minerals”, he chimed in “I do not like people to come and take our solid minerals to process and bring the finishing product. We should try and industrialize our continent and that will take us to the next level”.
‘the $4Billion Importation’
The minister of Steel Development, Shuaibu Audu recently revealed that Nigeria imports steel valued at a staggering $4billion annually. “The Nigerian steel industry hasn’t done so well in terms of local production, and consumption of steel which was set up to be an avenue for industrialization in Nigeria, more than four decades ago has hit a brick wall”, the minister noted “as you know, the ministry of steel development was created by President Bola Ahmed Tinubu in August 2023, basically, with the mandate to revive the steel industry which has been struggling since independence more than 60 years ago”.
While Nigeria has made concerted and committed efforts at bridging the steel divides with the establishment of Ajaokuta Steel, nothing significant has been achieved so far. Analysts contended that a fully operational steel mill in Nigeria will be a catalyst for the country’s industrialization. “You have to look at the economic boom that will follow a full functional steel mill not just for Nigeria, west Africa but for the whole of Africa in terms of meeting the needs and demands of industries like automobile, to name just one important sector”, Alade Jacob, an economic expert contended.
‘Road to Ajaokuta’
Considered to be the largest steel mill in Nigeria starting in 1979, the Ajaokuta Steel Company Limited (ASCL), located in Ajaokuta, Kogi state was built on a 24,000 hectares (59,000 acres) site. A brief history of the steel revealed that a feasibility study for the production of steel was first awarded to the British, and later undertaken by the defunct Soviet Union under a cooperation agreement with Nigeria.
In 1967, Soviet experts were reported to have recommended prospecting for iron ore in Nigeia, as the known deposits were of poor quality was discovered in Itakpe, Ajabanoko, and Oshokoshoko. Incorporated in 1979 under President Shehu Shagari with 94% completion in 1994, 40 of the 43 plants at the facility already built. Unfortunately, the giant mill hasn’t produced a single sheet of steel as of 2024. Despite various revitalization efforts by successive administrations, the behemoth has remained a sad reminder of how the country has fell on a hard times.
‘Filling the gap’
Analysts contend that with the success of Aliko Dangote’s foray in oil and gas, fertilizer, cement, among others, his decision to tackle steel has the possibility of changing the country and continent narrative for good. “Ajaokuta is a national tragedy” Danladi Sodiq declared “Dangote filling this critical gap will be a turning point for many industries in the country. Look out how much steel gulped annually from our coffer, you need no seer to tell you Aliko deserved all the needed supports to change the trajectory of that crucial industry”. He added that one of the reasons Aliko Dangote was able to pulled off his refinery project was because of the overt and covert support of critical stakeholders especially the President in Lagos. He believes with the President at the helms, race to ending steel importation might just be in the offing.
“It takes the killing of one leopard to be called a killer of leopards”, Professor Ndubuisi Ekekwe asserted while lauding Aliko Dangote bold moves in steel “Dangote has killed many leopards, and all Nigerians must commend this man”.
