Operators in the steel sector have placed a demand of N1 trillion intervention fund to jump start the steel industry and solid minerals sector of the national economy.
The demand came as Managing Director of the Bank of Industry (BoI), Mr. Waheed Olagunju, announced that the bank has supported Ilorin, Kwara State-based KAM Industries Limited with credit facilities worth over N10 billion in the last 10 years and is ready to do more as part of efforts at encouraging indigenous investment in the non-oil sector.
The demand was contained in a position paper presented to Vice President, Professor Yemi Osinbajo, at the foundation laying ceremony of a multi-billion naira steel integrated project being run by KAM Industries at Jimba Oja, on the outskirts of Ilorin.
Deputy Managing Director of KAM Industries, Alhaja Bolanle Yusuf had earlier explained to the Vice President on t the imperative of a conscious government effort at developing the steel sector of the economy saying it is a harbinger of greater development for any nation.
While presenting the position paper, Head Business Development of company, Mr. Bola Awojobi explained that the demand is to follow similar models that were used for the aviation and power sectors by the federal government.
His words: “As at 2014, the 30 existing steel rolling mills in the country has a combined installed capacity of 6.5 million metric tonnes per annum. Out of the companies, about 189 are operational producing 2.8 million metric tonnes per annum from letting of scarps. With continued pressure on the naira, it becomes crucial that a new approach by the current administration drawing from other climes such as Brazil, Guinea and South Korea which have successfully developed and transformed their mining industries using targeted policies.”