Nigeria Signs $1 Billion MoU with Rashmi Steel Group

On Tuesday, Nigeria signed a $1 billion investment Memorandum of Understanding (MoU) with India's Rashmi Steel Group in Kolkata, India. The agreement, facilitated by Minister of Steel Development Shuaibu Abubakar Audu, follows his tour of the Rashmi Metalik steel plant.

The MoU is a significant milestone in Nigeria's efforts to revitalize its steel sector, reaffirming President Bola Ahmed Tinubu's commitment to creating employment opportunities and conserving foreign exchange through import substitution. Nigeria possesses approximately 3 billion tons of high-grade iron ore reserves, with a target to produce about 10 million tons of crude steel annually by 2030.

Recent foreign direct investments in the sector include a $400 million Stellar Steel Plant in Ewekoro, Ogun State, and a $300 million direct reduced iron unit project by AIG in Kaduna State. The Nigerian government aims to provide a stable policy environment to attract further investments in the steel industry.