The Federal Government may stop the importation of steel into the country anytime soon as was the case with bagged cement, whose importation had been stopped for two years now.
The Director-General, Standards Organisation of Nigeria, Dr. Joseph Odumodu, said this at the unveiling of the first export initiative of thermo mechanically-treated steel bars by African Foundries Limited in Lagos on Wednesday.
He said the ban would take effect after the Federal Government might have ascertained the sufficiency of the product in the local market.
Commending the tenacity of African Foundries, which is currently manufacturing steel in the country for local consumption and exportation of about 5,000 tonnes of TMT rebar to Ghana, Odumodu said SON was not relenting in its efforts at ensuring that other local firms developed capacity to manufacture steel in the country.
The Minister of Mines and Steel Development, Alhaji Musa Sada, who inaugurated the steel billet mill plant two years ago, commended the firm for its continued commitment to the sector.
The minister, who was represented by the Director, Steel Development in the ministry, Mr. Abdullahi, also, said, “I wish to appreciate your commitment, which is worthy of note, that in spite of many challenges, your organisation has continued to have strong confidence in the economy going by the huge investment you have put in the steel sector.
“I want to congratulate you and also pledge our support for your new vision and this milestone of producing TMT bars, which are comparable in quality to any international producer.”
He said the ministry was collaborating with relevant ministries, departments and agencies to further evolve a responsive and effective sector-specific policy and incentives for local steel manufacturers to be able to compete favourably, and to also promote the utilisation of local steel products for the development of the nation’s infrastructure.
Commenting on the feat, the Chairman, African Industries Group, Mr. Pardoman Gupta, said the group started business with the inauguration of its first steel plant, African Steel Mills Nigeria Limited in Ikorodu in 2004, with a production capacity of 200,000 metric tonnes per annum.
The second plant, he added, was African Foundries at Ogijo, Ogun State, which had celebrated a major breakthrough in export.
Gupta said the group had invested N15bn in the first phase of African Foundries to achieve production capacity of approximately 500,000 metric tonnes of steel billets per annum; and another N20bn was currently being invested in the second stage to produce sections and profiles to make Nigeria self-sufficient, thereby substituting importation.
With the completion of the second phase, he said over 10,000 jobs would be generated for Nigerians directly and indirectly, while the foreign exchange being expended on importation would be conserved, and there would be promotion of direct export with the consequent inflow of foreign exchange from the sector, which was predominantly import-oriented until recently.
Gupta said, “We are happy to announce that we have commenced production of TMT steel bars, which was hitherto confined to Europe, America and few giant Asian countries like China, India, Japan, South Korea, among others.
“The first lot of 5,000 tonnes of TMT steel bars is now nearly ready for shipment to Ghana hopefully before the end of the month.”