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Nigeria can save $3bn yearly if it begins backward integration on steel—BUA chief

In his remarks at the opening plenary of the Africa CEO Forum in Abidjan, Cote d’Ivoire, the founder/Executive Chairman of BUA Group and Chairman of CCNN, Abdulsamad Rabiu, has advised the federal government to work towards implementing backward integration in iron and steel sub sector of the economy.

According to him, such policy direction will not only replicate the huge success recorded in cement and sugar sub sectors, but will be saving an average of $3bn capital flights annually.

It would be recalled that the federal government is in serious collision course with the national assembly over the latter’s rejection of fresh plans by the government to privatise the Ajaokuta Steel Complex in Kogi State after several failed attempts.

Rabiu in his presentation, recalled that 15 years ago, Nigeria was faced with a nightmare when it was only producing four million tonnes of cement, said the government’s reforms and BUA’s involvement in the industry had raised the stake to over 40 million metric tonnes, thereby saving the country over $4bn annually.

According to him, it is embarrassing that Nigeria is still importing steel when the raw materials were readily available in the country.