Abuja: A steel expert, Anthony Madagua, says the shortage of scrap remains a major challenge to sustainable steel production and the manufacture of affordable, quality steel products. Madagua said this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. He described scrap as a key raw material for steel production.
According to News Agency of Nigeria, Nigeria’s steel industry is yet to align with acceptable steel production practices and continued to face several challenges, notably scrap availability, logistics, and energy supply. Madagua emphasized that scrap availability continues to be a major obstacle to sustainable steel production and affordable quality steel products. He suggested that scrap aggregation should be regulated to some extent and called for the acceleration of scrap generation strategies already being discussed by the Ministry of Steel Development.
Madagua highlighted the importance of a vibrant steel industry for the industrialization of any nation, noting that no country has achieved sustainable industrialization without one. He expressed concern that despite Nigeria’s abundant iron ore and other raw materials, the country still relies on steel imports worth four billion dollars annually. He urged the Nigerian government to strengthen partnerships with ECOWAS and other African countries to maximize opportunities under the African Continent Free Trade Area (AfCFA) to boost its steel industry.
He also recommended collaboration with Guinea to process its high-grade iron ore into finished steel products for African markets under the AfCFA agreement. Madagua pointed out that the Simandou Iron Ore mine in Guinea, one of the largest high-grade iron ore mines, currently exports to China, which then re-exports finished products back to Africa, including Nigeria. He suggested that such partnerships would reduce dependence on imports and improve Africa’s competitiveness in steel production.
Madagua further noted that poor infrastructure, unreliable power supply, and quality control issues were affecting the development of the steel sector. He called for the upgrade of existing steel technologies, expansion of gas-powered electricity for industrial clusters, and improved rail infrastructure for efficient transportation of raw materials. Additionally, he advocated for the resuscitation and operationalization of the integrated steel plants at Ajaokuta and Aladja steel complexes, including the completion of the Ajaokuta project, describing them as the foundation of Nigeria’s steel industry.
The expert also highlighted the potential benefits of resuscitating the inland rolling mills at Jos, Katsina, and Osogbo, which could provide a steady supply of raw materials such as wire coils for MSMEs involved in steel processing. He noted that most producers of wire coils cater to their sister companies, making it challenging for downstream MSMEs to compete in further processing into products like nails, wire gauze, and binding wire.