Nigeria’s Federal Government has reaffirmed plans to unlock the country’s steel production potential in 2026 as part of a strategy to attract foreign investment, create jobs and drive inclusive growth in the manufacturing sector. Officials have described steel as a strategic anchor for industrialisation and a platform for broader investor engagement across heavy industry and infrastructure-related sectors.
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Government pushes industrial strategy for steel
The renewed focus on steel comes amid wider efforts to strengthen Nigeria’s industrial base and reduce import reliance. Stakeholders within the Ministry of Industry, Trade and Investment argue that reviving steel production will address infrastructure gaps in construction, energy, transport and manufacturing. They said this approach is designed to encourage foreign investors to commit capital, expertise and technology to domestic value chains.
Steel linked to broader manufacturing appeal
Manufacturing remains one of the top industries attracting foreign investment in Nigeria. Recent data from federal authorities indicates that billions of naira have flowed into manufacturing, fintech and energy sectors over the past two years, signalling investor confidence in Nigeria’s reforms and business environment.
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Value‑added production, including construction materials, food processing and light industrial goods, presents additional opportunities. Strategic free trade zones and special economic zones offer tax incentives, land access and regulatory support to attract investors.
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Energy as a catalyst for investment
Nigeria’s oil and gas sector continues to attract significant foreign participation, particularly in upstream projects. Expansion of gas pipelines and asset divestment initiatives by the national oil company are expected to catalyse further investment in energy infrastructure, gas‑to‑power projects and petrochemicals.
Finance and stock market investment flows
Nigeria’s capital markets have drawn increasing attention from investors. Equity trading activity expanded significantly in 2025, supported by reforms that encouraged both domestic and foreign portfolio participation. Analysts say improved market liquidity and regulatory clarity have bolstered foreign investor confidence in Nigerian equities.
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Prospects for foreign investor engagement
Despite structural challenges such as infrastructure deficits and policy uncertainty, the push for industrial revival in steel and related sectors forms part of a broader effort to diversify Nigeria’s investment appeal. Targeted reforms, combined with investment in energy, manufacturing and capital markets, could support stronger foreign inflows in 2026 and beyond.
