The Federal Government has signed a $1 billion investment deal with Indian conglomerate Rashmi Metaliks Group, marking a significant step in Nigeria’s efforts to revitalise its steel sector and attract foreign investment.
The agreement, sealed through a Memorandum of Understanding (MoU) on Tuesday in Kolkata, outlines a projected investment of $1 billion over the next three years.
Nigeria’s Minister of Steel Development, Shuaibu Audu, signed the agreement following a tour of the company’s steel plant in Kolkata, where he commended the scale of operations and the advanced technology deployed at the facility.
Audu also praised the company’s integrated production chain, which spans Direct Reduced Iron (DRI), pig iron, billets and finished ductile iron pipes, describing the operations as a model of efficiency and modern steel manufacturing.
According to the minister, the agreement represents a major milestone in Nigeria’s plan to reposition the steel industry in line with the development agenda of President Bola Ahmed Tinubu.
He said Nigeria’s proactive investment drive is already attracting substantial global capital and reaffirmed the government’s commitment to revitalising the steel sector, creating employment opportunities and conserving foreign exchange through strategic import substitution.
Audu noted that Nigeria possesses more than three billion tonnes of iron ore reserves, with some deposits grading as high as 67 per cent iron content. He added that the country’s domestic steel consumption is estimated at about $10 billion annually.
Under the government’s industrialisation plan, Nigeria aims to become a leading steel hub in Africa, targeting crude steel production of about 10 million tonnes per year by 2030.
The minister also highlighted several ongoing investments in the sector. These include a $400 million Stellar Steel plant in Ewekoro and a Chinese–Nigerian joint venture developing a modern hot-rolled coil steel plant expected to begin operations by November 2026.
In addition, African Industries Group is completing a fully integrated iron-and-steel facility at Gujeni, with about $300 million already invested in its Direct Reduced Iron and steel unit, as well as a galvanising and fabrication plant in Ikorodu.
To support the industry’s energy needs, Nigerian National Petroleum Company Limited and the Ministry of Steel Development have also begun work on five mini-LNG plants in Ajaokuta. The $500 million project is expected to enhance gas supply to steel manufacturers with a combined capacity of about 97 million standard cubic feet per day.
Audu used the visit to invite additional Indian investors to explore opportunities in Nigeria’s steel sector, including the establishment of integrated steel plants and the deployment of Direct Reduced Iron and electric-arc furnace technologies.
He assured potential investors that the government remains committed to providing an enabling business environment through policy stability, fiscal incentives and ongoing ease-of-doing-business reforms.
“We are open to credible investors willing to partner with us for mutual growth,” the minister said.
Responding, Vice Chairman of Rashmi Metaliks Group, Sunil Kumar Patwari, thanked the Nigerian delegation for visiting the company’s facilities in Kolkata.
Patwari said the visit underscores the priority the Nigerian government places on the partnership and expressed confidence that the projects outlined in the MoU will be successfully delivered with the necessary support from Nigeria.
The ministerial delegation also included officials from the Nigerian High Commission in New Delhi, led by Acting High Commissioner Ubong Akpan Johnny.
Audu is also scheduled to meet with India’s Minister of Steel, H. D. Kumaraswamy, to explore further areas of cooperation between Nigeria and India in the steel and manufacturing sectors.
