Developing the Nigerian Steel Sector: Economic and Industrial Implications

Abstract

This paper has reviewed the performance of Nigeria’s steel sector in
comparison with global steel production and utilization. The
potential of the steel sector to create jobs, stimulation of economic
growth and industrialization was examined. It was found out that the
top twenty economies of the world are steel producing countries
except Switzerland that commenced steel production recently. Some
challenges facing the Nigerian steel sector were highlighted to
include low quality of iron ore, non-coking nature of the Nigerian
coal, high sulphur and phosphorous contents of Nigerian ore,
corruption and poor contracting strategy among others and possible
solutions were suggested. The paper recommends that Nigerian
government should make pragmatic and urgent effort towards the
development of her steel industry, if sustainable development is to be
achieved. This can be done by enacting appropriate steel
development policies, creating conducive environment for
investments, and exertion of appropriate political will to eliminate or
minimize corruption in the steel and other sectors of the Nigerian
economy.