Minister for Mines and Steel Development, Arch. Olamilekan Adegbite has disclosed that the Nigeria’s Gross Domestic Product GDP of about USD 440billion is one of the fastest growing economies in Africa without the production of liquid steel.
He disclosed this during the official handing over ceremony of the Steel Plant Assets owned by the Standard Metallurgical Company, SMC in Sagamu, Ogun State to KAM Steel Integrated Company, a subsidiary of KAM Holding acquired with N60billion.
As the monetary value of all finished goods and services made within a country during a specific period, GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.
The Minister also said that Nigeria has over 30 steel manufacturers but can only produce 2.2million tons per annum using scraps and billets imported mainly from china. It is on record that Nigeria spends an Average of about USD 3.3 billion importing metals annually.
KAM Holding acquired the N60billion Steel Plant Assets owned by the Standard Metallurgical Company, SMC as part of efforts towards boosting its capacities for the Iron and Steel production.
Speaking at the official handing over ceremony of the assets, the Chairperson of KAM Holding, Dr. Iyadunni Bolanle Yusuf, stressed that, “If Nigeria must come out of the wilderness of poverty, unemployment and insecurity among other social vices, the Federal Government must deploy its machineries to support local manufacturers in their bids to survive and grow.”
Represented by the Senior Special Assistant (Technical), Mr. Olu Adedayo, the Minister maintained that, “The decline in GDP as a result of the fluctuating oil prices compelled the present Administration of President Muhammadu Buhari to commit itself to the diversification of Nigeria economy, thereby prioritizing the development of the minerals and metal and agricultural sectors.
“The Management of the Ministry has been working assiduously towards the enactment of the Nigeria Metallurgical Industry Bill in order to have an enabling law for effective regulation of the Metal Sector in Nigeria. The Ministry Solicits the support of all stakeholders’ especially metal sector operators in order to realize this.
“The Ministry is also working hard towards fast tracking the operationalization of ASCL and NIOMCO. The Government is encouraging Metal sector operators, especially local producers of metallurgical Mineral raw materials and steel metal products to synergize with miners towards ensuring local beneficiation of raw materials in Nigeria…”