Investors in the solid minerals sector have been assured of the federal government’s support in form of incentives, in order to ensure that the sector contributes maximally to the economic diversification plan and development of the country.
The Minister of Solid Minerals Development, Dr Kayode Fayemi, stated this in Ilorin, Tuesday, during the foundation laying ceremony of the ultra modern KAM Industries Steel Melt Shop, regarded as the largest indigenous private sector investment in the steel sector in the country.
The minister who lauded the vision of the promoter of KAM Industries, said such a landmark project became possible because government had put in place structures to support and provide incentives to genuine investors in order to enhance their productivity.
He said the ministry of solid minerals development would also focus on capacity building in the steel sector in order to drive the country’s technological development.
Fayemi said: “Adequate incentives and encouragement have been extended to investors who have distinguished themselves in their various areas of businesses leading to such ventures as this for which we gather today.
“The government is doing this in realization of the fact that Nigeria, like all other developed nations of the world, must have a viable steel sector. Therefore, this government is turning on all the keys and pushing all the buttons to ensure that the steel sector is brought to its rightful place.
“ KAM Industries has been a partner of the Ministry of Solid Minerals Development through its investments in both the upstream and the downstream sector of the Minerals industry .
“ The enabling environment created by Government is what has given spore and muscles to the private sector such as seen in the strides of KAM IND today.
Speaking further, the Minister said a new Mineral Sector Road Map had been developed in order to accomplish the set targets of boosting the sector.
The minister said that basic metals in Nigeria, made up of processed steel, aluminium products and associated derivatives import is about 25 million tonnes per annum estimated at about US$4.5 billion.
He added that despite the country’s ranking in terms of iron ore reserves in the world, exploitation and steel production are still very low.
“ As a result, the local steel industry is under-developed and is currently being fed largely by steel scrap. This project is therefore in line with the Ministry’s Road Map and Federal Government backward integration initiative.”, the minister said.
“We can begin to build capacity in steel production from the primary raw materials rather than just importing semi finished steel products for further processing to serve our markets.”
He said as government continued to create a conducive atmosphere for investment, more industries would be established, “and there would be creation of jobs and wealth for the citizens, conservation of foreign exchange arising from the use of locally produced products as well as increased revenue generation for Government, resulting in the diversification of our nation’s revenue base.”
“The investment climate has been purposely made attractive by Government to achieve enhanced steel production in the country.”, Fayemi added.