The Federal Government has signed a Memorandum of Understanding (MoU) with an Indian company, Rashmi Metaliks Group in Kolkata, for an investment of one billion dollars in Nigeria’s steel development over a three-year period.

The Minister of Steel Development, Prince Shuaibu Audu, who led the Nigerian delegation, signed the agreement following his visit to the company in India.

A statement on the visit was made available to newsmen on Tuesday by the Ministry’s Head, Press and Public Relations, Salamatu Jibaniya.

In the statement, Audu described the move as a major milestone in Nigeria’s drive to reposition the steel sector, boost industrial growth, generate jobs, and conserve foreign exchange through strategic import substitution.

The minister, during his tour of the facility, commended the scale of operations, the deployment of advanced technology, and the company’s integrated systems, describing them as a model of efficiency and excellence in modern steel production.

He said the facility’s efficiency underscored the importance of value addition, innovation, and sustainability in modern steel production.

He said the visit demonstrated efforts to strengthen economic ties between India and Nigeria in steel, mining, and manufacturing, adding that the Nigeria’s proactive investment drive had attracted more than $2.2 billion dollars in foreign direct investment.

According to Audu, Nigeria is transitioning from a raw minerals exporter to a value-adding industrial economy and possesses over three billion tonnes of high-grade iron ore reserves.

“Some deposits grading as high as approximately 67 per cent iron content (Fe), while domestic steel consumption is estimated at about $10 billion dollars annually,” he explained.

Nigeria, he said, aimed to become a leading steel hub in Africa, targeting crude steel production of approximately 10 million tonnes per annum by 2030.

The minister urged Indian investors to explore opportunities within Nigeria’s steel sector, assuring them of policy stability, fiscal incentives and other reforms aimed at protecting their investments.

“We are open to credible investors willing to partner with us for mutual growth,” he said.

On his part, the Vice Chairman of Rashmi Metaliks Group, Mr Sunil Patwari, while acknowledging Nigeria’s determination to reposition its steel sector, urged for its support in delivering the projects covered in the MoU.

The steel minister is also scheduled to hold discussions with the Indian Minister of Steel, Shri Kumaraswamy, to further explore areas of mutual collaboration in the steel sector before returning to Nigeria.