Federal Government to Develop Steel Industry

The Federal Government is dedicated to assisting companies in producing car components. The development of the steel industry would lessen the reliance of the country on imported steel for the production of new cars. Minister of Industry, Trade and Investment, Dr. Olusegun  Aganga, said.
 Aganga said, although Nigeria has close to two million metric tonnes of reserved bags of iron ore, the second largest in Africa, it still spend $3.3bn yearly importing still and iron. In the next years, the $3.3bn will become $15bn. If companies like KAM Industries and others do not do what they are doing, the country will remain poor as a nation and youths unemployed.
He believes Nigeria is gifted with enormous resources for the production of car parts, adding that the government’s auto policy was aimed among other things to grow car manufacturing and allied industries and that the steel sector had been the backbone of any economic or industrial development of many nations.
Aganga said the Federal Government would support companies like KAM Industries which is involve in production of car parts, stating that the industrial revolution plan of the government was aimed at boosting the steel industry and other sectors of the economy.
 “We are looking at areas where Nigeria has competitive and comparative advantage, where Nigeria has been No 1 in Africa. We have come with auto policy. We want to be able to produce car components in this country, which means we have to encourage the iron and steel sector. This sector has to work for us to have the raw materials to produce the parts of the cars we want to be using in the future,” said Aganga.

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