Nigeria’s government has signed a $1 billion MoU with Chinese firms for an iron ore-to-steel project in Kogi State, promoting local value addition, creating jobs and improving the trade balance. The project is part of Nigeria’s broader industrialisation efforts.
The Federal Government of Nigeria has entered into a $1 billion Memorandum of Understanding (MoU) with two Chinese companies, China Civil Engineering Construction Corporation (CCECC) and Sinomach-He, for an iron ore-to-steel project in Kogi State. This move is aimed at enhancing local value addition in the solid minerals sector during President Bola Tinubu’s visit to Beijing for the Forum on China-Africa Cooperation (FOCAC). Solid Minerals Development Minister Dr. Dele Alake described the project as a landmark achievement in transitioning Nigeria’s mineral sector from raw exports to local processing, which is expected to generate jobs and improve the trade balance by focusing on the export of value-added products. Future mining licenses will necessitate local processing plans.
In recent years, Nigeria has been seeking to diversify its economy and reduce reliance on crude oil by focusing on its solid minerals sector. The iron ore-to-steel project in Kogi State represents a significant investment to promote industrialisation in the country, leveraging Nigeria’s natural resources to create value domestically rather than exporting raw materials. The government aims to encourage local processing, improve employment opportunities, and boost foreign exchange earnings by exporting finished products. This MoU with Chinese firms marks an essential step towards achieving these goals and fostering sustainable industrial development in Nigeria.
The $1 billion MoU signed between the Nigerian government and two Chinese companies marks a pivotal step in advancing the country’s industrialisation strategy. The iron ore-to-steel project not only aims to enhance local processing of minerals but also promises job creation and improved trade balance through the export of finished products. With future mining licenses requiring local processing, Nigeria is on a promising path towards turning its mineral sector into a value-added industry.
Original Source: nairametrics.com