How African Industries contributes to Nigerian economy

African Industries is a diverse West African multinational with over 8,000 employees from more than 10 countries globally.

The group has 12 manufacturing plants across Nigeria, out of which six are steel manufacturing plants.

Some of the subsidiaries include African Steel Mills and Ikorodu Steel Mills in Lagos State; African Foundries, Ogijo, Ogun State; African Wire & Allied Products, Agbara; and Abuja Steel Mills, among others.

The group exports its products from Nigeria to other West African countriess and is increasing investments in neighbouring countries.

“All together we produce one million metric tonnes of steel, accounting for 60 to 70 percent of the steel requirements of Nigeria,” Raj Gupta, chairman of African Industries, told Real Sector Watch recently in Lagos.

The group manufactures international grade steel, chemicals (for soap, detergent, water purification and mining materials), architectural glass (for buildings/constructions), and paving stones (for roads and residential use).

Gupta said the group has invested over half N500 billion into the Nigerian economy.

“The steel sector is the backbone of any economy. Government needs to, first of all, recognise that the sector is really benefitting the country.  There is the need to put a local content policy in place whereby all the steel users and all the government contractors should stipulate they must buy made-in-Nigeria steel,” he said.

According to him, the Nigerian government needs to check influx of cheap and substandard steel products.

“The United States, the European Union and many countries have put anti-dumping duties.  The Nigerian government should look at doing this. The major thing, again, is the cost of doing business in the country. It is very, very high. The interest rates are high. I believe that there should be a fund to support the steel sector because no industry can flourish over a long time if the interest rates are double-digit. Government support is required in this area,” he said.

ODINAKA ANUDU