The Nigerian Minister of Steel Development, Prince Shuaibu Abubakar Audu, has signed a $1 billion Memorandum of Understanding (MoU) with Indian conglomerate Rashmi Metaliks Group to boost investment in Nigeria’s steel sector.
The agreement was signed on Tuesday in Kolkata, India, and outlines a projected investment of $1 billion over a three-year period.
The deal follows the Minister’s tour of the Rashmi Metaliks steel plant, where he commended the scale of operations and the advanced technology deployed at the facility.
In a statement issued by the Ministry’s Head of Press and Public Relations, Salamatu F. Jibaniya, the Minister praised the company’s integrated operations, which span Direct Reduced Iron (DRI), pig iron, billets, and finished ductile iron pipes.
He described the facility as a strong example of industrial efficiency and excellence in modern steel production.
Audu stated that Nigeria’s proactive investment drive is increasingly attracting global capital, noting that the agreement represents a significant milestone in the country’s efforts to reposition its steel industry.
He reaffirmed President Bola Ahmed Tinubu’s commitment to revitalising the sector, creating employment opportunities, and conserving foreign exchange through strategic import substitution.
Read Also: Nigeria Signs $400m Deal to Revive Steel Industry
President Tinubu Vows To Reposition Nigeria’s Steel Sector
Nigeria, Stakeholders Partner to Revitalise Steel Industry
The Minister added that the efficiency observed at the facility underscores the importance of value addition, innovation, and sustainability in modern steel production.
He further emphasised that the visit reflects strengthening economic ties between Nigeria and India, particularly in steel, mining, and manufacturing.
Nigeria to Become Leading Steel Hub in Africa
Highlighting Nigeria’s industrial potential, Audu said the country is transitioning from a raw minerals exporter to a value-adding industrial economy.
He disclosed that Nigeria possesses over 3 billion tonnes of iron ore reserves, with some deposits grading as high as 67 percent iron content, while domestic steel consumption is estimated at about $10 billion annually.
According to him, Nigeria aims to become a leading steel hub in Africa under the Renewed Hope Agenda, targeting crude steel production of approximately 10 million tonnes per annum by 2030.
The Minister also outlined recent foreign direct investments in the sector, including a $400 million Stellar Steel plant in Ewekoro, Ogun State, and a Chinese-Nigerian joint venture developing a modern hot-rolled coil steel plant scheduled to commence operations by November 2026. He added that African Industries Group is nearing completion of a fully integrated iron and steel plant in Gujeni, Kaduna State.
He noted that the company has already invested $300 million in Direct Reduced Iron (DRI) and steel production, as well as in a galvanising and fabrication plant in Ikorodu, Lagos, which was recently commissioned.
Audu also highlighted ongoing energy infrastructure projects designed to support the industry’s growth.
He referenced a recent collaboration between the Nigerian National Petroleum Company Limited (NNPC), the Ministry of Steel Development, and their partners to develop five mini-LNG plants in Ajaokuta, Kogi State. The $500 million project is expected to boost gas supply to the steel industry, with a combined capacity of approximately 97 million standard cubic feet per day.
Investment Opportunities
The Minister used the visit to invite more Indian investors to explore opportunities in Nigeria’s steel sector, particularly in establishing integrated steel plants, deploying Direct Reduced Iron and electric arc furnace technologies, and developing value chains for automotive, construction, and infrastructure steel.
He assured prospective investors of the Nigerian government’s commitment to providing an enabling environment through policy stability, fiscal incentives, and ongoing ease-of-doing-business reforms.
“We are open to credible investors willing to partner with us for mutual growth,” Audu said.
The Vice Chairman of Rashmi Metaliks Group, Sunil Kumar Patwari, expressed appreciation for the Nigerian delegation’s visit and reaffirmed the company’s commitment to delivering on the projects outlined in the agreement, subject to continued support from the Nigerian government.
The ministerial delegation included senior officials from the Ministry and representatives of the Nigerian High Commission in New Delhi, led by Acting High Commissioner Ambassador Ubong Akpan Johnny.
The Minister is also scheduled to meet with India’s Minister of Steel, H. D. Kumaraswamy, on April 16, 2026, to further explore areas of bilateral collaboration in the steel sector.