The Federal Government yesterday urged steel industries to embrace the backward integration and value chain approach to achieve the nation’s production target of 12.2 million tonnes of steel by 2020.
Mr Also Abdullahi, the Director, Steel and Non-Ferrous Metals Department in the Ministry of Mines and Steel Development, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja.
NAN recalls that the Federal Government had set a steel production target of 12.2 million tonnes by 2020 as part of efforts to revitalise the steel sector.
Abdullahi said that this year, the ministry would come up with guidelines for steel production in the country to encourage backward integration processes.
He said that the cardinal principles of National Industrial Revolution Plan (NIRP) launched in January by the Federal Government were the effects of the backward integration efforts on the iron and steel sector.
He said that the Federal Government recently inaugurated a committee to come up with a wide range of incentives for steel manufacturers to boost steel production in the country.
He said that the ministry would soon prioritise iron ore mining titles to enable investors to carry out backward integration activities.
According to him, the Federal Government wants the private companies to invest in backward integration projects in steel production so as to facilitate the country’s efforts to achieve industrialisation.
“We are currently working on a range of policies, while advising the government to encourage people to continue to invest in backward integration projects.
“The steel companies in the country are currently melting metal scraps and they are gradually engaging in backward integration approach.`