Inadequate Power Deprives Nigeria of $650 Million Spent Annually on Steel Importation

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Uche Iwuamadi, Executive Director of Africa Industries Group, has said Nigeria could become a steel-making power house if the country had access to reliable energy, The Punch reports.

Iwuamadi lamented that Nigerian steel manufacturers struggle to produce at full capacity due to unreliable power. The company recently took matters into its own hands and decided to build its very own gas power plant to provide electricity for its steel mill. The firm, according to him, generates 115 megawatts of electricity using natural gas and sells the surplus electricity via the national grid.

It now produces over one million tonnes of steel each year, accounting for 33% of all steel consumed in Nigeria, and is looking to 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.

Source: Energy Mix Report

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