In a bid to revive Nigeria’s moribund steel industry, the Federal Government is engaging German manufacturers on technology, investment and equipment supply.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated this in Abuja on Friday when he received a delegation of German Original Equipment Manufacturers (OEMs) led by the Head of VDMA German OEMs, Mr. Chux Onaa.
According to the Minister, the discussions are focused on critical areas of mineral processing, steel production, engineering services, equipment manufacturing and technology transfer, with the aim of strengthening local industrial capacity and unlocking the potentials of the sector.
Prince Audu said the engagement is part of the Federal Government’s deliberate strategy under President Bola Ahmed Tinubu’s Renewed Hope Agenda to reposition the steel sector as the backbone of Nigeria’s industrialization drive.
He noted that steel is central to national development, as it supports construction, automotive manufacturing, defence, energy, infrastructure and other key sectors of the economy.
The Minister lamented that despite Nigeria’s huge deposits of iron ore and other raw materials needed for steel production, the country has continued to depend heavily on imported steel and equipment due to lack of functional steel plants and modern technology.
He explained that stronger collaboration with German manufacturers, who are globally renowned for engineering excellence and industrial technology, would help to bridge the technology gap and reduce Nigeria’s dependence on imported equipment.
According to him, the partnership being explored would facilitate the deployment of modern mineral processing plants, efficient steel production systems and local fabrication of equipment and spare parts within Nigeria.
Audu said the government is particularly interested in technology transfer that will build the capacity of Nigerian engineers, technicians and other local manpower to operate, maintain and eventually manufacture steel production equipment.
He added that the Ministry is working to create an enabling environment for foreign investors, including policy incentives, improved infrastructure and ease of doing business to attract sustainable investment into the steel value chain.
The Minister expressed optimism that the current engagement would lead to concrete investment commitments and long-term industrial partnerships between Nigeria and Germany, beyond mere talks.
He assured the German delegation of the Federal Government’s commitment to transparency, policy consistency and protection of investments, stressing that Nigeria is open and ready for business in the steel sector.
In his remarks, the leader of the German delegation and Head of VDMA German OEMs, Mr. Chux Onaa, commended the Federal Government for its renewed focus on reviving the steel industry and for reaching out to German manufacturers.
Onaa said the VDMA, which represents over 3,600 German machinery and equipment manufacturers, is keen to explore opportunities in Nigeria’s steel and mining sector and to deploy its expertise in engineering and equipment supply.
He disclosed that German OEMs have the capacity to support Nigeria in areas such as design and construction of mineral processing plants, supply of high-grade steel production equipment, and provision of after-sales services and training.
According to him, the collaboration could also cover establishment of local assembly plants for mining and steel equipment, which would create jobs and reduce the cost of importation for Nigerian companies.
The German delegation leader said they were impressed with the potentials of the Nigerian market and expressed readiness to work with the Ministry of Steel Development to identify bankable projects for investment.
He noted that a strong steel industry in Nigeria would not only serve the local market but would also position the country as a hub for steel supply within the West African sub-region and Africa at large.
Stakeholders in the steel sector have described the move as a step in the right direction, saying that partnership with Germany could fast-track the revival of key assets such as the Ajaokuta Steel Company and the National Iron Ore Mining Company, Itakpe.
They urged the Federal Government to ensure that any agreement reached with the German manufacturers includes clear timelines, local content provisions and measurable technology transfer that will benefit Nigerian youths and local industries.
The meeting ended with both parties agreeing to set up a joint technical working group to develop a roadmap for collaboration and to identify priority areas for immediate intervention and investment.
