Nigeria has signed a $1 billion investment Memorandum of Understanding with Indian steel conglomerate Rashmi Metaliks Group, marking a major step in efforts to revitalise the country’s steel sector. The agreement was formalised on Tuesday in Kolkata following a tour by Nigerian officials of the company’s advanced steel plant, which produces a range of products including Direct Reduced Iron, pig iron, billets, and ductile iron pipes.
Minister of Steel Development, Prince Shuaibu Audu, praised the facility’s scale and technology, describing it as a strong example of industrial efficiency. He said the deal underscores Nigeria’s shift from exporting raw minerals to developing a value-added industrial economy, with domestic steel consumption estimated at $10 billion annually.
Nigeria holds over 3 billion tonnes of iron ore reserves, some grading as high as 67 per cent iron content. Under President Bola Tinubu’s Renewed Hope Agenda, the country aims to produce 10 million tonnes of crude steel per year by 2030, positioning itself as a leading African steel hub.
The Rashmi Metaliks deal follows recent major investments in Nigeria’s steel industry, including a $400 million Stellar Steel plant in Ogun State and the African Industries Group’s $300 million integrated iron-and-steel project in Kaduna. Energy infrastructure to support the sector is also advancing, with a $500 million initiative to build five mini-LNG plants in Ajaokuta, Kogi State, aimed at supplying gas to steel manufacturers.
Audu invited further Indian investment, highlighting opportunities in integrated steel plants, DRI and electric-arc furnace technologies, and automotive and construction steel value chains. He assured investors of policy stability, fiscal incentives, and reforms to improve the ease of doing business.
Rashmi Metaliks’ Vice Chairman Sunil Kumar Patwari expressed appreciation for the Nigerian government’s engagement and reaffirmed the company’s commitment to delivering on the MoU’s projects with adequate support.
The ministerial delegation, led by Audu and accompanied by officials from the Nigerian High Commission in New Delhi, is scheduled to meet India’s Minister of Steel, Shri H. D. Kumaraswamy, on Thursday to explore further collaboration before returning to Nigeria.
