The Steel Industry in Nigeria: Problems and Prospects

Abstract

The public steel industry in Nigeria has clearly failed to grow and to serve as the springboard from which other industries could launch out into the national economy. It is the biggest and perhaps, the most controversial public sector investment outfit in the Nigerian economy that has been unproductive. The public worry, concern and interest about the industry are, therefore, well situated. This essay has examined the background, status, problems and prospects of the public steel industry in Nigeria and believes that the bad public image and the huge investment without returns already made on steel notwithstanding, it is still imperative to complete the various steel projects and make them work. This position rests on the well known fact that no nation can really develop industrially without functional local steel and steel-based industries. The problems that have bedeviled the Nigerian steel industry for over thirty years are critically examined. The possible downstream effects of steel on the Nigerian economy, especially in stimulating small and medium scale enterprises upon which the prospects of the steel industry rests, are highlighted. Applying the SWOT (Strengths, Weaknesses, Opportunities and Threats) analytical framework on the prospects of Nigerian steel, it was discovered that much as the strengths and opportunities are high, the weaknesses and threats are a little bit higher. The essay then concludes that all efforts should be made to ensure that the strengths and opportunities are reinforced, the weaknesses and threats reduced, and indeed, eventually eliminated. This would steal the pride of place it ought to occupy in the task and process of industrialization of the national economy. Herein lies the basis of the future prospects of Nigerian steel. The essay ends with brief recommendations of policy options to be considered by government towards ameliorating the problems of Nigerian steel and positioning the industry to be a veritable engine of growth in the national economy. Strategies or steps to be taken towards addressing such problems are, accordingly, proposed.