Today Nigeria produces 0.11% of global steel (less than two million metric tonnes) but imports 5 million tonnes annually. European history confirms that the industrial revolution was based on the discovery and use of coal, iron and steel.
The Franco-Prussian war that determined the unification of Germany in 1870 was a struggle for Iron and Steel in Alsace and Lorraine. Therefore Nigeria’s industrial leap into the 21st century was dependent on Ajaokuta and Delta Steel and numerous rolling mills. Nigeria has failed woefully as an industrial nation and in the production of Iron and steel while its auto industry languishes today.
Efforts to revive the Nigerian steel industry are already under way. However, competing against increasingly low cost steel imports from China is the biggest threat confronting every potential investor.
The attached slides address these and other issues in the domestic and global commodities market.
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