FG moves to revive steel industry
The Federal Government of Nigeria has intensified efforts to revive the nation’s ailing steel sector, marked by a strategic visit to Premium Steel and Mines Limited, previously known as Delta Steel Company, located in Ovwian-Aladja, Delta State.
This initiative indicates a renewed effort to rejuvenate Nigeria’s steel assets as part of a comprehensive economic recovery strategy.
Led by Minister of Steel Development Shuaibu Audu, the visit highlighted the Bola Tinubu administration’s resolve to restore legacy steel facilities to full operational capacity.
As stated by Tine-Iulun M.A, the Assistant Director of Information and Public Relations at the Ministry of Steel Development, the initiative seeks to generate employment, foster industrial growth, and bolster Nigeria’s economy.
“A plant that was once pivotal to Nigeria’s steel production and a beacon of industrial progress in the area must be revitalized. We are hopeful that the complete revitalization of Premium Steel and Mines Ltd will yield over 5,000 direct jobs and 10,000 indirect jobs,” Audu remarked during the recent inspection.
He was accompanied on the visit by the ministry’s Permanent Secretary and senior directors, including Dr. Chris Isokpunwu.
The minister highlighted that restoring the steel facility is aligned with the Tinubu administration’s economic objective to increase the nation’s GDP to $1 trillion.
He noted that the promoters of PSML have demonstrated recognized expertise and experience within Nigeria’s economic landscape and will be supported to ensure the company achieves commercial viability.
“This is not merely a plant; it is a vital asset. Its revival will act as a catalyst for related industries and will significantly decrease unemployment. We will persist in creating a supportive environment for serious investors and ensure Nigeria becomes a competitive player in the global steel industry,” he stated.
Audu emphasized that the ministry will focus on maintaining quality standards, safeguarding local manufacturers, and supervising the return of PSML to full operational status.
He reiterated the government’s dedication to implementing standards and enhancing competitiveness.
Permanent Secretary Isokpunwu reaffirmed the ministry’s commitment to continual stakeholder engagement to establish a sustainable steel industry.
Sahil Vaswani, Managing Director of PSML, mentioned that the company had invested in modern technology to enhance the Rolling Mill in 2018 but was compelled to shut down in 2021 due to disruptions caused by COVID-19 and shortages of raw materials.
“Despite the obstacles, we have maintained our commitment. Premium Steel & Mines Ltd has the potential to reignite Nigeria’s industrial revolution. However, to achieve this, we require a consistent supply of domestically sourced iron ore to shorten our working capital cycle,” Vaswani stated.
He expressed confidence that, with government assistance, the steel company could play a significant role in enhancing the national GDP and serve as the foundation for Nigeria’s industrial advancement.
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