Dr. Muda Yusuf Warns of Steel Production Crisis in Nigeria

The 15-day nationwide strike by scrap-metal dealers in Nigeria poses a significant threat to steel production, as highlighted by Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE). He identifies the crisis as indicative of a deeper vulnerability in Nigeria's steel value chain, primarily its reliance on scrap metal as a key raw material.

Yusuf emphasizes that the weakness of the steel industry is a major barrier to the construction sector and industrial development, leading to capital flight and a lack of backward integration. He notes that Nigeria continues to import billets and flat sheets for iron rod production, despite investments in steel development.

The strike could exacerbate the situation by disrupting scrap supply, increasing dependence on imports, and raising construction costs. Yusuf calls for the establishment of a properly integrated steel industry to support Nigeria's expanding construction and manufacturing sectors, which could create jobs and stimulate industrial growth.