Saudi Arabia Expresses Interest in Nigeria’s Steel Sector

Saudi Arabia has opened discussions with Nigeria on possible investments in the country’s steel sector, signaling what could become one of the most significant foreign partnerships in Nigeria’s renewed push for industrialization. The engagement followed a high-level meeting between a Saudi trade delegation and Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, during which both sides explored opportunities in iron ore extraction and steel production.

Officials familiar with the meeting revealed that Saudi Arabia is particularly interested in sourcing Nigerian iron ore and developing value-addition projects within the country — a shift from the decades-long trend of exporting raw minerals without domestic processing.

Early discussions point to a model where iron ore would be mined in Nigeria and processed into steel locally, leveraging Saudi investment and technical expertise.

The talks come at a time when Nigeria is actively seeking strategic partners to revive its dormant steel industry.

Under Prince Audu’s leadership, the Ministry of Steel Development has already signed a $400 million agreement with Stellar Steel Company Limited to establish a new plant in Ewekoro, Ogun State — part of the government’s plan to achieve an annual output of 10 million tonnes of crude steel by 2030.

Saudi involvement, if finalized, is expected to bolster Nigeria’s industrialization agenda by facilitating technology transfer, expanding local processing capacity, and reducing the country’s heavy reliance on imported steel. Analysts say such a partnership could also accelerate efforts to reposition major projects like the Ajaokuta Steel Complex and create thousands of jobs across mining, processing, and logistics.

While no binding agreement has been signed yet, officials describe the discussions as promising, with both countries viewing steel development as a mutually beneficial frontier for economic cooperation.

Further negotiations are expected in the coming months as Nigeria continues to court major investors to unlock its mineral potential.