Nigeria’s Steel Minister, Audu Signs $1bn Investment MoU with Rashmi Steel Group in India
• As steel sector attracts over $2.2bn FDI under President Tinubu’s Renewed Hope Agenda
Kasim Sumaina in Abuja
Minister of Steel Development, Shuaibu Abubakar Audu, Tuesday signed a Memorandum of Understanding (MoU) with Indian conglomerate, Rashmi Metaliks Group, in Kolkata, India, for a projected investment of $1 billion over a three-year period. This followed Audu’s tour of the Rashmi Metaliks Steel Plant in Kolkata, 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 a example of industrial efficiency and excellence in modern steel production.
The minister, in a statement issued by Head, Press and Public Relations of the ministry, Salamatu F. Jibaniya, stated that Nigeria’s proactive investment drive was already attracting significant global capital.
He stated that the MoU signed with Rashmi Metaliks Group represented a major milestone in Nigeria’s effort 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.
Audu added that the efficiency of the facility underscored the importance of value addition, innovation, and sustainability in modern steel production.
He emphasised that the visit further reflected the strengthening of 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, stating that the country is transitioning from a raw minerals’ exporter to a value-adding industrial economy.
He disclosed that Nigeria possessed well over three billion tonnes of iron ore reserves, with some deposits grading as high as approximately 67 per cent iron content (Fe), while domestic steel consumption was estimated at about $10 billion annually.
Audu said Nigeria aimed to become a leading steel hub in Africa under Tinubu’s Renewed Hope Agenda, targeting crude steel production of approximately 10 million tonnes per annum by 2030.
He said, “Recent Foreign Direct Investments in the sector includes: 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.
“African Industries Group (AIG) is completing a fully integrated iron-and-steel plant at Gujeni in Kaduna State. The company has invested $300 million in the Direct Reduced Iron (DRI) and steel unit of the project; and the galvanising and fabrication plant in Ikorodu, Lagos.
“Energy infrastructure is also being developed to support the growth of the industry. The Nigerian National Petroleum Company Limited (NNPC), the Ministry of Steel Development and their partners recently broke ground on five mini-LNG plants in Ajaokuta, Kogi State — a $500 million project aimed at boosting gas supply to the steel industry, with a combined capacity of approximately 97 million standard cubic feet per day.”
Audu used the visit to invite additional Indian investors to explore opportunities within Nigeria’s steel sector.
He highlighted prospects for establishing integrated steel plants in Nigeria, deploying Direct Reduced Iron and electric-arc furnace technologies, and developing full value chains for automotive, construction and infrastructure steel.
He further assured prospective investors that the Nigerian government remained committed to providing an enabling environment through policy stability, fiscal incentives, and ongoing ease-of-doing-business reforms aimed at protecting investments.
“We are open to credible investors willing to partner with us for mutual growth,” the minister said.
Vice Chairman of Rashmi Metaliks Group, Mr. Sunil Kumar Patwari, on behalf of the company, expressed appreciation to the Nigerian delegation for the successful visit to their facilities in Kolkata.
Patwari emphasised that the visit reflected the priority placed on the partnership by the Nigerian government. He assured that, with the necessary support from the Nigerian government, Rashmi Group was committed to delivering on the projects envisioned in the MoU.
The ministerial delegation was led by the Honourable Minister, alongside Directors from the ministry and officials of the Nigerian High Commission in New Delhi, led by Acting High Commissioner, Ambassador Ubong Akpan Johnny.
Audu was also scheduled to engage with his counterpart, the Indian Minister of Steel, Shri H. D. Kumaraswamy, to explore areas of mutual collaboration between the two countries in the steel sector, before returning to Nigeria.
