With the present level of raw material input for Nigerian steel sector, the country is on the verge of becoming totally self-reliant to meet local and international market.
“Presently, the raw materials stock feed to the plant is 95% local and the output of wire rod in coils provides 98% stock in feed to our Nails and Wire Producing plants across Nigeria,” said the Vice President, KAM Holding, Hajia (Dr.) Bolanle Iyadunni Yusuf.
The industrialist said this Thursday in her welcome address to the Minister for Mines and Steel Development, Architect Olamilekan Adegbite on a state visit to Ilorin the Kwara State capital.
Hajia Yusuf emphasized that national self-sufficiency from the profiles of steel production and market in Nigeria is not far-fetched.
She further said that the second phase of the KAM plant to produce Sections of H, U and Angle beams for industrial buildings and bridges is ongoing and when completed shall be first of its kind in Nigeria.
Hajia Yusuf continues, “The number of producing plants built in Nigeria, our investments in China and India, our experience in the last two decades and our vision for the future have position us as the leading indigenous steel and wire products making company in Nigeria.
“In tandem with the National Industrial Revolution Plan of the Federal Government with emphasis on backward integration strategy, we are pleased to confirm to you that KAM Steel Integrated Company Limited which is located along Km 18 Ilorin-Ajase Ipo highway, Jimba Oja, Ifelodun Local Government Area, is a success story of backward integration strategy and is becoming one of the major players in the nation’s economy.
“The Integrated Steel Melt Shop has the capacity to produce Liquid steel of about 300,000tonnes annually as well as Rolling Mill of 150,000tpa to roll out wire rod in coils and TMT Bars among others in line with International Standards using Ultra-modern technology of Electric Arc Furnace and Ladle Refining Furnace to mention but a few.
Hajia Yusuf also highlighted KAM’s macroeconomic impact on Nigeria, saying “The plant is already conserving the nation’s scarce foreign exchange to the tune of USD250 million annually and by extension increasing the Gross Domestic Product (GDP) of our country.
“However, with emphasis and credence to our long-standing achievements and projection for the future of our dear nation, we hope to ensure that no stone shall be left unturned towards achieving and attracting more economic fortunes to Nigeria.
Diversifying Nigerian economy
“As the federal government continues to strive towards diversifying the nation’s economy beyond crude oil and petroleum products, there is need for more attention in the Iron and Steel sector to become a National Product for diverse economic benefits due to the numerous opportunities such as job creation, revenue generation and improved social welfare of the people of the nation.
“Furthermore, there is need for continuous advocacy for diversification of the economy, most importantly; in favour of Steel sector and guard against economic saboteurs who have held us to ransom through smuggling and illegal importation of Galvanized, Aluminum and Corrugated roofing sheets into Nigeria.
Smuggling and border closure
“Your Excellency sir, despite the recent closure of land borders, Seaports are still porous and at the moment, Nigeria market is flooded with substandard roofing sheets, a sad scenario which calls for urgent national debate. Conspiracy and sharp practices among law enforcement agencies and importers are outrightly negating the Federal Government’s drive against criminality among Nigerians.
Nigerian Government plans total ban on Steel importation — Minister
Reacting, the Minister of Mines and Steel Development, Arch. Olamilekan Adegbite said though his ministry cannot control steel quality but it I working towards banning its importation.
He said, “First, we are working with Standard Organization of Nigeria (SON) to address the issue. The ministry is not in control of the quality of steel products that come into the country, though we’re responsible for steel productions. We’ll work with the standard agency to control what comes in.
“The ultimate aim is to ban steel importation totally. But before we do that, we will ensure we’re able to satisfy local consumption from local production and still have excess to export. That’s where we’re heading.”
Adegbite also welcome and encourages local entrepreneurs, as he inspected KAM plants, adding that, “I can see depth of backward integration here, from raw material to finished product. This is an example of what Nigeria should do.
“If you do this you can imagine this complex providing over 4,000 employment opportunities. If we have replication of this all over the country, it will reduce rate of restiveness and banditry we have in the country”.
The steel manufacturers under the aegis of Basic Metal, Iron & Steel and Fabricated Metal sub-sector is headed by the GMD/CEO of KAM Holding, Dr. Kamoru Yusuf, who is jointly the Chairman of the Manufacturers Association of Nigeria (MAN), Kwara and Kogi Chapter. heading.