Nigeria’s industrial and mining industry which is moribund may be revived soon. This is coming at a time when experts and analysts in the economic have called for its revival as a way of also resuscitating the Nigerian economy since the beginning of the fall in oil price.
This was revealed in an interview by the minister of Solid Minerals Development, Kayode Fayemi in Cape Town, South Africa.
According to Bloomberg report, the country is aiming to hand over the $4.5 billion Ajaokuta steel complex to private operators this year as part of a plan to kick start its industrial and mining industries. “Construction of Ajaokuta, which lies on the Niger River and was supposed to have an installed capacity of 5 million metric tons of steel a year, began in 1979. Work was delayed by the government’s failure to pay the builders, Russia’s Tyazhpromexport, on schedule. By 2004, when it was taken over by India’s Ispat Industries Ltd., it was yet to produce any steel. Ispat’s concession was revoked in 2008 and Nigeria is yet to resolve all outstanding legal issues. “Ajaokuta steel mill is one of the major issues I have put on the table and “Under my watch” it will be revived, Fayemi said.
‘Next Boom’
In addition to steel, Fayemi said that the government aims to improve the implementation of mining laws, make available better data on the country’s deposits and act to regulate informal mining. Because of the global rout in commodity prices, significant investment may not be expected soon. “The sector has been comatose for some time. We will be ready for the next boom”.
Initially the focus will be on industrial minerals for domestic consumption, he said. Limestone for cement production, iron ore for steel, bitumen for asphalt, barium for oil drilling and lead and zinc will be focused on.
The country will also try and attract investment into gemstone mining and will improve data on gold deposits in Zamfara state and elsewhere before trying to attract investors in 2017. An attempt will also be made to revive thermal coal production for power generation, he said
