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Nigeria Spends USD 3 billion on steel importation annually - BUA Chairman

Steel News - Published on Fri, 11 Jan 2019

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This Day Live quoted chairman and Group Chief Executive Officer of BUA Group, Mr Abdul samad Rabiu as saying that Nigeria spends about USD 3billion on importation of steel for local and industrial use. In a chat with journalists in Lagos, Mr Rabiu sought the support of the federal government in encouraging businesses to substitute importation, noting that if financing support is provided, the USD 3 billion import bill in the steel sector can be saved. The industrialist emphasised the need to build industries where raw materials can be easily accessed locally for production while also restating its company’s resolve to bridge the gap of about two million metric tonnes of imported raw sugar in the country.

Corroborating the claim of Rabiu recently, Founder of African Foundries Limited, Parduma Gupta, said the company produces about one million tonnes of steel rods, which accounts for about 60-70 per cent of the entire steel rods required in Nigeria, adding that it employs about 8,000 and 10,000 both directly and indirectly.

He also added that the scarcity of scrap in the country is becoming a threat to the steel sector.

He said that “We have been using iron scrap as our raw material but the increasing scarcity is becoming a threat to the industry, we approached the federal government and was advised to explore the usage of Iron ore. The challenge is that the percentage of iron content in the domestically available iron ore is much lesser than what is needed.”

He explained that “We have to make further heavy investments to introduce the latest technology for the increase of iron ore content suitable for steel production. This project is at an advance stage and hopefully we will be able to make Nigeria self- sufficient for its requirement of Iron rods.”

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Posted By : Rabi Wangkhem on Fri, 11 Jan 2019
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