Nigeria could become a steel-making power house if the country had access to reliable energy, according to a prominent Nigerian CEO.
Uche Iwuamadi, Executive Director of Africa Industries Group, believes that Nigerian steel manufacturers struggle to produce at full capacity due to unreliable power.
The company recently took matters into their own hands and decided to build their very own gas power plant to provide electricity for their steel mill.
It now produces over one million tonnes of steel each year, accounting for 33 per cent of all steel consumed in Nigeria, and is looking export to other countries in Africa.
Iwuamadi believes that if firms were able to produce at full capacity, Nigeria would be able to save over $650 million a year by producing cheaper steel which could be sold on the domestic market.
Developing countries need access to baseload power in order to fully industrialise their economies. Heavy industry, such as manufacturing, provides well-paid skilled jobs, and produce high value products that can be taxed and used to pay for education and healthcare.