The Minister of Steel Development, Prince Shuaibu Abubakar Audu on Tuesday, commissioned the galvanising steel plant of Orbit Galvanising Steel Industries Limited and Orbit Fabrication Works Limited, in Lagos State.
The minister, who noted that the plant is another milestone project of the African Industries Group (AIG), described the project as a landmark achievement in Nigeria’s galvanising and steel fabrication sub-sector.
The commissioning of the galvanised steel plant is part of the minister’s working visit to Lagos, where he is engaging key private sector players in the steel industry, as the Federal Government intensifies efforts to foster private sector participation in driving economic growth.
Prince Audu commended the African Industries Group for its commitment to investing in the Nigerian steel sector to advance local manufacturing, create jobs, and economic sustainability which aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu administration, noting that Orbit Fabrication has the capacity to produce up to 50,000 metric tons of fabricated towers annually. This capacity brings the combined annual production capacity of all tower fabrication companies in nigeria to around 200,000 metric tons per annum.
The Minister who highlighted the administration’s proactive policies on local content, industrial expansion, and import substitution as key enablers to the success of the project, reiterating the commitment of the Federal Government to revive the steel sector of the country before the end of the current administration.
The minister stated: “This plant, which is a pioneer achievement of the African Industries Group in the galvanising sub-sector, has further reinforced the group’s commitment to invest in the Nigerian steel sector with a focus on local manufacturing of different steel products through backward integration for the overall economic development of the country.”
He said “in recognition of the importance of galvanized steel products to multiple projects across different industries and the overall economic development of Nigeria, the Federal Government graciously granted concessionary import duties to importation of Galvanized steel products prior to the establishment of this plant.”
The minister stated: “I want to use this opportunity to call on end users both government and private sector to patronise our locally fabricated tower products because there is now capacity to meet the demands for quality tower products within nigeria and the ECOWAS market.”
“This plant currently employs about 350 nigerians and will also save foreign exchange for the country.”
“One of the principal tasks before my ministry under the administration of President Bola Ahmed Tinubu, is to create an enabling environment for local investments and ensure that there is a level playing field.”
“The commissioning of this project is a testament to the effort of the current administration to rejuvenate the steel sector of the Nigerian economy and I enjoin other prospective investors to emulate African Industries Group,” Prince Audu stated.
Mr. Rajah Gupta, a Directors of the African Industries Group, who spoke on behalf of the Chairman of the Company, reaffirmed the long-standing commitment of the AIG to Nigeria. He emphasized that AIG, which has operated in Nigeria for over 54 years, remains dedicated to positioning the country among the elite group of nations that produce and export crude steel.
“We have made the largest non-oil foreign direct investment in Nigeria, specifically in the steel and mining sectors. To date, the Group has invested over $600 million and is currently producing iron and steel from locally sourced iron ore. Very soon, we will begin exporting locally manufactured BRI (Basic Raw Iron) to other countries,” Mr. Gupta stated.
He further explained that the company’s manufacturing strategy is driven by the goal of import substitution, transforming local raw materials into finished goods, thereby conserving foreign exchange for the nation.
As part of his official engagements, the Minister paid a courtesy visit on the Lagos State Government, where he was warmly received by the Deputy Governor, Dr. Kadiri Obafemi Hamzat.
During the visit, Prince Audu informed the Deputy Governor of his intention to tour steel facilities in the state toward understand the challenges faced by private sector players and explore ways the government can support them.
Addressing the Deputy Governor, Prince Audu said: “We are here to seek continued collaboration and support from the Lagos State Government. More importantly, we aim to work harmoniously with the state, considering that over 60% of private steel investors are based in Lagos.”
“This partnership is crucial, and I commend both you and the Executive Governor for your dedication to implementing the Lagos State Development Plan.”
“Lagos is not only a mega city, it is one of Africa’s top five economies and plays a pivotal role in Nigeria’s overall economic growth. President Bola Ahmed Tinubu has laid a clear development blueprint for Lagos, and your administration has carried that vision forward with excellence,” Prince Audu said.
The Deputy Governor thanked the Minister for his visit and expressed the commitment of Lagos State Government to collaborating with the Federal Ministry, particularly in addressing the concerns of steel companies operating within the state.
