In a big win for Nigeria’s industrial future, the government has signed a $1 billion deal for a brand-new iron ore to steel plant in Kogi State. The Minister of Solid Minerals Development, Dele Alake, sees this as a major step in the government’s plan to boost local production and create jobs for young Nigerians.
During President Bola Tinubu’s recent visit to China, Minister Alake met with representatives of the project’s key players—Chart and Capstone Integrated Limited from Nigeria, and Sinomach-He from China. He assured them of the government’s full support to make sure the project is completed as quickly as possible.
A New Approach for Nigeria’s Mineral Sector
Minister Alake explained that Nigeria is moving away from the old system, where raw minerals were exported without any processing. The new plan is to focus on local value addition—processing the minerals right here in Nigeria. This means more jobs, skill development, and a better trade balance with countries like China. In simple terms, instead of just sending out raw materials, Nigeria wants to start exporting finished products, which will earn the country more money and improve its economy.
To support this, the Minister said that companies applying for mining licenses now need to include plans for how they will process the raw materials locally.
How This Benefits Nigeria
Right now, Nigeria’s trade with China heavily favors the Asian giant because we mostly export raw materials. Once Nigeria starts exporting finished or semi-finished products, like steel, the trade balance will improve, and the country will earn more foreign exchange. Minister Alake believes that this will not only create jobs but also help reduce Nigeria’s debt in the long run.
The CEO of Chart and Capstone Integrated Limited, Chief Abel Edijala, praised the Minister for creating a smooth and transparent process for mining licenses. He shared that their company applied for an exploration license, and the process was fair, quick, and without the need for any shady dealings.
Edijala also highlighted the importance of tax waivers for equipment and tax holidays to help the project succeed, especially in the early stages.
Sinomach-He, the Chinese company partnering on the project, is ready to bring its experience and resources to Nigeria. Established in 1958, Sinomach-He has over 15,000 employees and handles 80% of China’s steel needs. They have the expertise to not only mine the iron ore but also produce the equipment needed for the project.
According to the MOU, Sinomach-He will oversee the engineering, procurement, installation, and training for the entire project.
