Nigeria has signed a $1 billion investment Memorandum of Understanding with the Indian steel conglomerate Rashmi Metaliks Group, marking a significant advancement in the country’s efforts to revitalize its steel sector. The agreement was formalized on Tuesday in Kolkata, following a visit by Nigerian officials to the company’s advanced steel plant. This facility produces a variety of products, including Direct Reduced Iron, pig iron, billets, and ductile iron pipes. Minister of Steel Development, Prince Shuaibu Audu, commended the scale and technology of the plant, describing it as a strong example of industrial efficiency.
Audu emphasized that this deal reflects Nigeria’s transition from exporting raw minerals to fostering a value-added industrial economy, with domestic steel consumption estimated at $10 billion annually. Nigeria boasts over 3 billion tonnes of iron ore reserves, some of which have an iron content as high as 67 percent. 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 steel hub in Africa.
The Rashmi Metaliks agreement follows other significant 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. Additionally, energy infrastructure to support the sector is progressing, with a $500 million initiative to establish five mini-LNG plants in Ajaokuta, Kogi State, aimed at supplying gas to steel manufacturers.
Audu also invited further Indian investment, highlighting opportunities in integrated steel plants, Direct Reduced Iron (DRI) and electric-arc furnace technologies, as well as in the automotive and construction steel value chains. He assured potential investors of policy stability, fiscal incentives, and ongoing reforms to enhance the ease of doing business in Nigeria. Sunil Kumar Patwari, Vice Chairman of Rashmi Metaliks, expressed gratitude for the Nigerian government’s engagement and reaffirmed the company’s commitment to executing the projects outlined in the MoU 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.
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