Key Points

• Functioning steel industry key to maritime development in Nigeria.

• Nigeria’s import dependence raises costs for maritime infrastructure.

• Reviving steel sector will unlock maritime potential nationwide.

The Steel and Engineering Research Council of Nigeria (SEREC) has called for the steel industry in Nigeria to be brought back to life. They say that this is important for the country’s maritime development.

Dr. Ibrahim Musa, the Director-General of SEREC, spoke at the Nigerian Maritime Business Roundtable in Lagos. He said that Nigeria can’t compete with its neighbours in shipbuilding, offshore facilities, or port infrastructure without a strong domestic steel industry.

Musa said, “No maritime nation thrives without steel,” and pointed to China, South Korea, and India as examples of countries that linked their maritime dominance to steel production.

Steel industry that works is important for maritime growth

The Director-General specifically mentioned the Ajaokuta Steel Company, which was once thought to be the key to Nigeria’s industrialisation. He said that efforts to revitalise the area that had failed for decades, like bad concession agreements with companies like Global Infrastructure Holdings Limited in the mid-2000s, were to blame. Musa told the Tinubu government to make finishing Ajaokuta a top priority, along with getting new private-sector investment. He said, “The steel industry that works is not just a slogan; it’s an economic fact.”

Nigeria’s reliance on imports makes things more expensive

People who were there included officials from the Nigerian Ports Authority (NPA), the Ship Owners Association of Nigeria (SOAN), and representatives from Dangote Industries. They said that ship repairs in Nigeria are up to 40% more expensive because most of the steel comes from other countries. Bola Akande, a maritime analyst, said that Nigeria spends more than $3 billion a year on steel products from other countries, money that could be used to create jobs in Nigeria. Akande said, “Every steel plate brought in for a ship is capital flight.”

According to a report by Vanguard news, Dakuku Peterside, who used to be the Director-General of NIMASA, said that the lack of steel has stopped local shipyards from working, so companies have to go to Ghana and Côte d’Ivoire for dry-docking services. Peterside said, “We are losing our comparative advantage because Nigeria depends almost entirely on imports.”

Bringing the steel industry back to life will open up maritime possibilities

People in the steel industry suggested that the government and private businesses work together and offer tax breaks to get investors to come in. They also asked groups like the Nigerian Sovereign Investment Authority to put money into restarting steel production. Funke Agbor, a maritime lawyer, said that Nigeria can’t modernise its dry docks or build ships at home without cheap steel. This is a key requirement for the Cabotage Act to work.

Dr. Musa said that bringing steel back to life is a matter of national security. He said, “It is important to treat the functioning steel industry as a key to maritime development.” “Nigeria can’t control West Africa’s maritime space without it.”