FG urged to enforce patronage of local iron, steel products

Against the backdrop of the challenge local manufacturers are facing, Hasib Moukarim, managing director, Nigeria Gas and Steel Limited (NGSL), a pioneer manufacturer of Hollow Steel Sections and Pipes in Nigeria, has called on the Federal Government to enact law that will enforce importers of local iron and steel products to patronise local manufacturers.

Moukarim, while commending a recent communiqué issued by the Nigeria Society of Engineers (NSE) after its stakeholders’ workshop with a theme “Iron and Steel Production in Nigeria – A paradigm shift in policy and investment priorities,” expresses sadness over a situation where Nigerian businessmen imported 61,500 tons of steel pipe (finished goods) in 2014, therefore terminating employment of thousands of workers due to diminishing sales and lost market to the imported materials.

He observes that currently over N2.3 trillion is expended annually on the importation of iron and steel products with the subsequent negative effects on the national economy, resulting in significant expenditure of foreign exchange and exportation of jobs.

According to him, importation of raw material for local steel industry is on the increase due to non-readiness of local suppliers such as Ajaokuta Steel Project to provide the required raw material.

He wonders why Nigerians import finished goods such as steel pipes, hallow sections and iron rods when there are many manufacturers of such items in the country, employing thousands of workers and investing huge capitals to run their businesses.

He therefore urges the Federal Government to enforce the patronage of domestically produced iron and steel products and by-products in line with the Nigeria Content Policy by incorporating such terms and conditions in the Contract Agreements of key infrastructure projects of government funded by the public sector, and as well encourage synergy between iron and steel industries, government agencies/parastatals and academia.