Nigeria has signed a $1bn investment agreement with India’s Rashmi Metaliks Group as Abuja steps up efforts to rebuild domestic steel production, reduce imports and expand higher-value industrial output from its mineral resources, Leadership has reported.

The memorandum of understanding (MoU) was signed in Kolkata by Minister of Steel Development Prince Shuaibu Abubakar Audu and executives from Rashmi Metaliks.

The project is expected to be implemented over three years and ranks among Nigeria’s largest recent commitments in the steel sector. The agreement aligns with President Bola Tinubu’s broader industrial strategy to attract foreign capital into manufacturing and increase domestic processing of raw materials.

Audu said the deal followed a visit to Rashmi Metaliks’ facilities in India, where he cited the company’s integrated production model, spanning direct reduced iron to finished ductile iron pipes, as a framework Nigeria aims to replicate. He said the agreement is expected to support efforts to revive the steel industry, create jobs and reduce foreign exchange outflows by replacing imports with local production.

The minister said Nigeria has attracted more than $2.2bn in foreign direct investment into the steel sector and argued that the country is positioned to sustain a larger domestic industry. He added that Nigeria holds more than 3bn tonnes of iron ore reserves, with some deposits containing up to 67% iron content, while the value of annual domestic demand for steel is about $10bn.

Abuja is targeting crude steel production of 10mn tonnes annually by 2030 and aims to position Nigeria as a major steel hub in Africa. Audu referenced ongoing projects, including a $400mn steel plant in Ewekoro, Ogun State, and a $300mn integrated iron and steel project being developed by African Industries Group in Kaduna State.

Rashmi Metaliks Vice Chairman Sunil Kumar Patwari said the group is committed to delivering the projects covered by the agreement, subject to necessary government support. Audu is also expected to meet India’s Minister of Steel H. D. Kumaraswamy as Nigeria seeks closer ties with India in steel, mining and manufacturing.