Backdrop & Context
Nigeria has long relied on imported steel products for itsinfrastructure and manufacturing needs, causing a substantial outflow offoreign exchange. Estimates show that the country spends over $4 billionannually on steel imports. This dependency has stifled domestic capacity andreduced opportunities for industrial employment. Recognising this structuraldeficiency, the federal government under President Bola Ahmed Tinubu unveiledan ambitious industrialisation strategy through the Renewed Hope Agenda, targetinga $1 trillion economy by 2030. Central to this vision is increasing localcontent and self-sufficiency, particularly in strategic sectors like steel.
The commissioning of the Orbit Galvanising Steel Plantrepresents a watershed moment in Nigeria’s industrial journey. Located inIkorodu, Lagos, the facility is a response to the urgent need to substituteimports with homegrown production, also provide sustainable jobs for Nigerians.
Who’s Involved?
The new galvanising plant is a flagship initiative of AfricanIndustries Group, a prominent conglomerate that operates across metals,chemicals, power, also agriculture. The facility was officially commissioned byMinister of Steel Development, Shuaibu Abubakar Audu, who has emerged asa strong advocate for local manufacturing and backward integration. During hiskeynote address, Minister Audu lauded AIG’s leadership, Chairman Raj Guptaand Group Managing Director Alok Gupta, for their bold investment in Nigeria’sfuture.
“The commitment shown by AIG is not only commendable butexemplary,” said Audu. “Their belief in Nigeria’s industrial potential is whatwe need from the private sector to truly drive our economy forward.”
The event was attended by senior federal and stategovernment officials, private sector stakeholders, community leaders from Ikoroduand Igana, also industry experts.
Economic Gains & Job Creation
Minister Audu highlighted that the Orbit plant will help conservebillions of dollars in foreign exchange that Nigeria previously spent onsteel imports. With an annual production capacity of 50,000 metric tonsof galvanised steel, the plant is expected to meet about 25% of Nigeria’stower fabrication demand. The products will be critical for infrastructurein telecommunications, energy, oil & gas, and construction sectors.
“Every sheet of galvanised steel rolled out here replacesone that would have otherwise been imported. That is real economic value, righthere on Nigerian soil,” Audu remarked.
He also stated that over 350 Nigerians have already beenemployed directly at the plant, with many more expected to benefit throughindirect employment in logistics, services, raw materials, and downstreamindustries. “This is more than a plant, it’s a pipeline of prosperity for ourpeople,” the minister added.
Strategic Industrialisation Push
This galvanising facility aligns with Nigeria’s broaderstrategic push for industrial self-reliance. The Renewed Hope Agendacalls for accelerated investment in key sectors to move the country from aconsumption-based to a production-driven economy. The Orbit plant, with itssophisticated galvanising lines and modern fabrication capabilities, exemplifiesthis shift.
“What we are witnessing today is not just the commissioningof a factory, it is the birthing of a new era in Nigeria’s industrialisation,”said Minister Audu. He stressed that the project proves Nigeria can attractserious investors when the policy environment is clear, supportive, alsopredictable.
The minister encouraged other industrial players to take acue from AIG’s approach: “Nigeria is open for business, and if you arecommitted to our growth story, this government will walk with you every step ofthe way.”
Support for Local Manufacturing
Minister Audu disclosed that the federal government isactively reviewing its fiscal and industrial policies to encourage localmanufacturing over importation. This includes measures to revise tariffstructures on raw materials, also provide special tax reliefs forcompanies that source and produce locally.
“We are engaging with the Ministry of Finance, the FederalInland Revenue Service, and Customs to ensure that our fiscal regime rewardsproductivity, not import dependency,” said Audu. He further mentioned that the MetallurgicalIndustry Bill, currently in the drafting stage, would institutionalisethese incentives.
“Before this bill becomes law, we are proactively pushingthrough executive actions to fast-track support for investors like AIG,” hestated. These incentives are expected to include duty waivers, export rebates,and infrastructure support.
Symbol of Industrial Hope
At the commissioning ceremony, Minister Audu described theOrbit Galvanising Steel Plant as “a symbol of hope, progress, and industrialrebirth.” The occasion was marked by traditional blessings from communityelders, speeches from industry leaders, also a ribbon-cutting session thatbrought together dignitaries from different sectors.
The plant features cutting-edge galvanising lines,automated processing stations, also environmentally sustainable systems forwaste treatment. Its output will enhance Nigeria’s capacity in criticalinfrastructure projects, including electricity transmission lines,communication towers, modular buildings, also oil rigs.
A local youth leader in Ikorodu expressed his gratitude,saying, “For years, we watched steel come in from abroad. Now, our people arethe ones building it, and that means everything.”
Private Sector Confidence
AIG’s Director of Corporate Affairs, Taiwo Okewo,expressed deep appreciation to the federal government for its policy directionand support. “What you see here today is proof that the private sector is readyand willing to invest when given the right environment. We at AIG are committedto building Nigeria with Nigerian talent and Nigerian resources.”
He added that the company’s long-term vision includes expandingcapacity, creating training institutes, and developing exportmarkets for Nigerian-made steel. “We don’t see this plant as an endpoint,but as a launchpad,” said Okewo.
Key Takeaways:
