Steel Sector Repositioning: Gateway to Sustainable Nigerian Industrial Development
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1 International Conferene on Afrian Development Issues (CU-ICADI) 215: Materials Telmology Trak Steel Setor Repositioning: Gateway to Sustainable Nigerian Industrial Development Anthony Nkem Ede 1, Gideon Olukunle Bamigboye 1, Jadesola Ogundeji 1, Domini Azuh 2 'Department of Civil Engineering, 2 Department of Eonomis and Development Studies Covenant University, Km 1, Idiroko Road, Canaan Land, P.M.B. 123 Ota, Ogun state, Nigeria. anthony.ede@ovenantuniversity.edu.ng, gideon. bamigboye@ovenantuni versi ty. edu. ng Jadesola.ogundeji@ovenantuniversity.edu.ng domini.azuh@ovenantuniversity.edu.ng Abstrat- Steel is at the hea1-t of eonomi and sustainable development of any nation. It is one of the matedals most widely used by all seton of the eonomy, fmm 1 esom-eeffiient building stmtm es to ene1 gy-saving tmnspm t and infmstmtuml systems to envh-onmentally-fdendly industdal development anhm ed on lean 1 enewable ene1 gy and 1 eylable pmduts. Considedng that the most advaned eonomies of the wodd pmdue and onsume la1 ge quantities of steel and ti ying to assess the hallenges onfmnting Nigedan industdal development, the state of Nigedan steel development is evaluated in this 1 esea1-h. This pape1 1 esea1-hes into the state of steel pmdution and onsumption in Nigeda. Data olleted on Nigedan steel industdes and the best pmties in the inte1 national senes a1 e statistially analyzed. The 1 esults obtained leady shows that the mot of poo1 pel"fo1 mane of Nigerian eonomy is due to the poo1 perfo1 mane of Nigedan steel industi y. The pape1 pmposes way out fm the 1 epositioning of Nigedan steel industi y and then fm the tme Nigedan Sustainable Industdal Development. Index Terms- Steel, Sustainable Development, Industdalization. I. INTRODUCTION Steel is essential to all solutions of the soiety's daily needs as it is indispensable to housing, infrastruture, transport systems, manufaturing, agriulture, water and energy supply. Steel is at the enter of world eonomy and worldwide, the steel industry adopts approahes that enhane sustainable development striving to meet the present needs without ompromising the ability of future generations to meet their own needs [ 1]. This delivers wealth for all nations, wealthy and poor alike, while preserving and enhaning the planet's resoures. The very many hallenges experiened by the developing nations suh as population growth, inability to meet up with urbanization needs, high level of unemployment and ever inreasing rate of poverty by an alleviated by steel. Steel industry and allied fatories transforming steel to finished produts absorb a lot of labor fore in any soiety. Researh and development strategies adopted by the steel industry sine industrial revolution till have ontributed immensely to the advanement of the world. The qualities of steel suh as strength, reylability, availability, versatility and affordability makes it a unique material. In fat, one steel is produed it beomes a permanent resoure to the soiety beause it is 1% reylable without loss of quality and has a potentially endless life yle [1]. The reylability and versatility have brought about ountless innovations. While the steel industry is energy and arbon intensive, researh and development investments are ushioning the environmental impats. Steel industry is one of the most effiient manufaturing proess as most by produts proessed to finished produts or used in manufaturing proess suh as ement fatories. Over 22 billion tonnes of steel has been reyled worldwide sine 19 owing to steel's 1% reylability [1]. A look at the trend of steel industries worldwide shows that the largest eonomies of the world produe and onsume large quantities of steel whereas the lessperforming eonomies inluding Nigeria have a very low steel prodution and onsumption apaities. Given the great potentials of steel materials and how it is impating on the eonomies of the advaned nations, this paper researhes into the state of steel prodution and onsumption in Nigeria. Data olleted on Nigerian steel industries and the best praties in the international senes are statistially analyzed. Partiular attension will be plaed on the steel used for buildings and infrastrutural development. II. LITERATURE REVIEW Steel is produed prinipally from iron whih is one of Earth's most abundant elements and reyled steel. Steel 148
2 International Conferene on Afrian Development Issues (CU-ICADI) 215 : Materials Tehnology Trak is manufatured under arefully ontrolled onditions in speialized plants. The steel material tehnology have grown exponentially in the past 1 years as shown figure L The properties of every type of steel are determined in a laboratory and desribed in a manufaturer's ertifiate. Thus, the end user only speifies the steel omplying with a relevant standard, and the fabriator ensures that the orret steel is used appropriately [1-2]. In order to appreiate the great potential of steel to the eonomy, this researh onsiders more in depth the appliation of steel in the onstrution industry. 4,6' '16 Constrution l Domesti applianes 1, '16 Avtomtlliv 2.9'16 Elt!<trtCal equ!ptt'l(!nt 1, , , Fig. 1. World rude steel prodution, (Mt) [Soure WSA, 212] Steel in Constrution Steel plays an essential part in the growth of any modem soiety. Constrution industry is a very important setor of every nation's eonomy. It is one of the most important steel-using industries, aounting for more than 5% of world steel demand. From steel reinfored onrete residential buildings, to industrial buildings, to strutures for publi use, to high rise buildings. All these strutures rely on steel for their strength and dutility. Steel is also used on roofs and as ladding for exterior walls. Figure 2 shows the World onsumption of steel per setor in 213 [3]. Constrution industry onsume as muh as 52% of World steel Steel an be adopted in two major ways in onstrution: as reinforing bars for reinfored onrete strutures or as stand-alone material for onstrution. In developing nations like Nigeria, steel have been used mainly for reinfored onrete strutures while in the developed nations, steel frame strutures are well developed and pratied. Metal produts mahinery Soure: woridsteel Fig. 2. Steel usage by setor in 213 [Soure: WSA, 214]. Reinfored onrete is a omposite material per exellene [4] and is widely used beause of the omplimentary properties of onrete and steel Very good onrete ompressive strength is effiiently ombined with the high tensile strength of steel to provide the world with the most aepted material for buildings and infrastrutures. Conrete and steel provide omplementary support to eah other, ompensating for the weaknesses in their properties [5] and thereby making the material a very dutile onstrution material The reinforing steel bars are produed in speialized industrial set up and generally ome with ertified quality. The quality of ement, the binder of onrete, is also produed in speialized fatory similar to steel fatories and is guaranteed by the manufaturer in a manner similar to that of steel Unlike the hoie of steel for strutural appliations, the hoie of onrete mixes is virtually infinite and therefore the seletion has to be made with a sound knowledge of the properties and behavior of onrete. The appliation of reinfored onrete material is not without attending hallenges in different parts of the world [6]. In Nigeria where building ollapse is ommon, it turns out that most of the ollapsed buildings are onrete strutures [7]. The quality of onrete material and steel reinforement used in Nigeria buildings have been severally mentioned as the possible auses of building ollapse as test results onfirmed general low quality. Steel frame strutures are used for over 9% of single storey, non-domesti buildings, roofing for super markets, big outlets sports, holiday entre and weather ontrolled environments [8]. Steel for strutural frame offers designers more design freedom in strength, flexibility and shapes. The adoption of steel as main frame struture is for strength, beauty, preision, malleability, light weight, 149
3 International Conferene on Afrian Development Issues (CU-ICADI) 215: Materials Telmology Trak long span up to 6rn and even above, durability, redued time of eretion, versatility of appliation, ost, endless reylability and potential for easy hange of layout several times during the building's life. The long spanning ability gives rise to large open spaes, e.g. the roofing of the over loom span Faith Tabernale, Canaan Land, Ota, Nigeria, free of intermediate olumns or load bearing walls. The apaity to bend to a ertain radius, reating segmented urves or free-form ombinations for faades, arhes or domes sets it apart. Steel materials lend for industrialization of produts and the fatory-fmished onstrution elements omes with the most exating speifiations under highly ontrolled onditions. This makes the quality of fmal produt more preditable and repeatable, eliminating the risk of on-site variability. For more hallenging sites, steel allows less points of ontat with the earth, reduing the amount of exavation required and ostly foundations. The effiienies of steel onstrution leads to substantial resoure effiienies and eonorm benefits, inluding aelerated projet shedules, redued site ativities and earlier returns on investment. State of Afrian Steel It is predited that sub Saharan Afria's onstrution industry will grow from $75bn in 213 to about $18bn by 225 [9]. Currently, Afrian produers are unable to meet the demand for steel espeially the reinforing bars whih is why steel import is high. To meet up with the high demands, fraudulent ativities are rife in the steel setor as poor standard produts are easily supplied leading to frequent building ollapse that have been verified in Nigeria [1]. The need for inreased loal investment in the steel setor and the enforement of international standards annot be over-emphasized. These needs reate great opportunities for Afrian investors to see off ompetitors and help to boast Afrian eonomies. Apart from South Afria and Egypt that are leading the way, most Afrian nations are in a very bad shape. In 213, Kenya produed about 2 tonnes of rude steel whih is too far off from the national demand of about 1.2 million tonnes. Efforts to improve prodution will have to ontend with the issue of heap steel import that is frustrating the efforts of indigenous Afrian ompanies from growing. Dumping of finished foreign produts is taking people out of business in Afria. In 213, Afria's share of World rude steel prodution was 1% and finished steel produts for the same year stood at about 2%. Annually, Afria import over 25 million metri tonnes of finished and semi-finish steel produts with Algeria, Egypt, Nigeria, South Afria and Moroo leading. Apparent steel use per apita for 213 were 15.8 kg and 88.9 kg for South Afria and Egypt, respetively. On the World stage, data on Nigeria steel are missing sine 28 based on World Steel Assoiation data. While South Afria and Egypt forge ahead, Nigeria lags behind. In 213, South Afria rude steel prodution was 7.3 million metri tonnes while Egypt produed 6.8 million metri tonnes. Rebars aounts for about 8% of all steel sales in Egypt. In 214, the government imposed a temporary tariff on imported rebar to fight the dumping of rebar from China and Turkey. In Nigeria, the domesti industry has been greatly hurt by poor provision of eletriity. Ajaokuta Steel Company with theoretial apaity of 1.3rn tonnes of long steel produts have been lying inative due to neglet of suessive governments, managerial ineffiieny, poor power supply and lak of fund to omplete the final phase. Nigeria urrently spend about $3.3bn annually on steel and iron imports. In 213, the loal industry produed an estimated 1, tonnes of rude steel, whih is just about.6% of Afria's total. Data on Nigerian's steel apaity is appalling when ompared to other nations of similar size and eonomi might around the world. The urrent number of funtional steel rolling mills in Nigeria is estimated at about 21 up from about 5 funtional steel rolling mills 5 years ago. There are 15 steel rolling mill produing reinforing bars, about three old rolled steel mills produing old rolled flat plates and about three produing wire oils [ 11]. III. METHODOLOGY Having seen the importane of steel to the World eonomy with the highlighted examples of steel prodution and onsumption in the World, Afria and Nigeria with partiular emphasis on the appliations to the onstrution industry, we now analyze data on steel prodution and usage in the World, Afria and Nigeria. Seondary data were olleted from various soures suh as World Steel Assoiation [1], [3], World Bank [13], World Population Review [14], et. MS Exel generated bar harts were employed in evaluating the data olleted. IV. RESULTS AND DISCUSSIONS Here the results obtained from the data analysis are presented. 15
4 International Conferene on Afrian Development Issues (CU-ICADI) 215: Materials Telmology Trak 8 ~ ~4 ~ Major produers of rude steel in the World II.I I I Y21 Y211 I I 11 1l - Fig. 3. Major produers of rude steel in the World Figures 3 and 4 show the World prodution of rude steel and finished steel produts, respetivly for 21 and 211. Figure 5 shows the top 5 Gross Domesti Produts of the World for Q) 1-soo.Q = Major produers of finished steel produts in the World I I.I Y21 I I - Y211 Fig. 4. Major produers of finished steel produts in the World A look at these figures show that the top 5 nations with the highest Gross Domesti Produts (GDP) are also among the highest produers of rude steel and fmished steel produts. Figures 6 and 7 show the top 5 most populated Afrian nations and the top 5 Gross Domesti Produts (GDPs) respetively for 213. Figure 8 shows the top 5 Afrian rude steel produing nations with Nigeria inserted within their mist. Figure 9 shows steel prodution per setor in Nigeria ~1 ~ so Afrian Population for 214 I I I Nigeria Ethopia Egypt DRC South Nations Afria Fig. 6. Top 5 Afrian Population for 214 Afria's Top 5 GDPs for I.!!! 4 I 2 I I.Q = a5 Nigeria South Egypt Algeria Angola Afria Cl... Nations (.!) Fig. 7. Top 5 Afrian Gross National Produts (GDPs) for 213 Afrian Crude steel prodution for u z 14 ::::; -' 12 CO zr:: 1 _<! -' ("(l_j 8,...,o ~ 6 r:: 4 u \.9 Top World GDPs 768 Q) 1- '+- - ro :::::1..r::. 1-8, 6, 4, 2, I I - f._.(/> <v~~..._ -~~'?> '1> f._.(/> e; o.; ~<." ~ ~~ v o' \>' ~ ~ ~ o"' "' Countries Fig. 8. Afrian Top Crude Steel Prodution for 214 Fig. 5. The top 5 Gross Domesti Produts in the World for
5 International Conferene on Afrian Development Issues (CU-ICADI) 215: Materials Tehnology Trak Steel prodution per setor in Nigeria 2 +-' C1l 15 I Reinforing Flat plates Wire oils.. 1 :;:::; u :J 5 "" " "- aj _o E :J z bars Types of Steel Fig. 9. Steel prodution per setor in Nigeria From figures 7 and 8, it an be seen that Nigeria with its largest population Afria has also maintained the Afrian's largest eonomy. South Afria and Egypt with the seond and third largest Afrian eonomies are also among the top 5 most populated Afrian nations. Currently, Nigeria is the most populated and the leading eonomy in Afria. However, figure 8 shows that Nigeria is onspiuously missing in Afria's steel prodution [15]. The top leading steel produers in Afria, South Afria and Egypt are also the seond and third largest eonomies respetively in Afria. That these two Afrian largeeonomy nations are also the leading steel produers is in tandem with what is obtainable among the top World eonomies and the top steel prodution in the World. The prosperity of the advaned nations is refletive on their apaity to produe rude steel and fmished steel produts. That Nigeria with her large eonomy in Afria is not found among the top steel produers ia an anomaly that have a lot to say about the nation's future sustainable developmental strides. Over the reent years, so muh progress have been made in the steel industry world wide and the development of steel material tehnology have orresponded to enabled eonomi advanement. Nigerian's low apaity in steel material tehnology is showing in her poor performane in industrial setor of the eonomy, starting from the power generation and manufaturing setors. V. CONCLUSION From the researh, it an be seen that steel is at the heart of any nation's eonomi development as it is one of the most important materials adopted for everyday ativities for both domesti and industrial appliations. Demand for steel is very high in Nigeria and in the whole ontinent of Afria. The low apaity of the Afrians in meeting up with their basi needs inluding the steel industries needed to drive their eonomies are all linked to the misplaement of priority by suessive Afrian Govermnents. Exept for Egypt and South Afria, Afrian nations are onspiuously missing in the 214 World Steel Assoiation's report on World steel prodution, onsumption and exportation. That Nigeria does not feature within the top 5 steel produing nations of the World suggests lak of apaity for sustainable development. All leading eonomies of the World are also the leading steel produers. Until steel setor is developed, Afrian eonomies will ontinue to move at a snail's pae. For the steel produing fatories operating in Afria, it will be needful that they operate by the WSA high standard to redue the risk of strutural failures that have been verified in some Afrian nations. An energeti steel setor will aelerate the industrial development of Nigeria as it exploits the nation's abundant natural resoures and ontribute immensely to the growth of the gross Domesti produts (GDP). Steel industry and allied fatories transforming steel to finished produts have always absorbed large labor fore in steel produing nations. A vibrant steel setor will engender mass eonomi ativities that will reate jobs and solve the persistent problems of unemployment in Nigeria. The tenaity involved in the steel setor will improve tehnial skill aquisition that an be easily transferred from one setor of industrial set up to the other setors of national eonomy. Massive job opportunities and eonomi empowerment will be reated for engineers, tehniians, artisans and fabriators alike. Greater investment in the steel setor will defmitely serve as a spinoff for Nigerian Tehnologial advanement on whih sustainable national development will ride upon. To revitalize steel material tehnology in Nigeria, poliy makers must reate enabling enviromnent for the steel industry to flourish. Neessary infrastrutures must be made available. Basi tehnial eduation must beome a priority with at least one tehnial seonary shool in every of the nation's 774 LGAs. These shools will prepare the students for all tehnial setors of the eonomy. It must be understood that the nations's eduational needs at the grass root level are different from those adopted by advaned nations suh that a speial model of tehnial eduation must be reated to suit the nation's need. The burning desire of young Nigerians to aquire quality tertiary eduation must be built on a solid foundation of basi tehnial eduation other wise the gap between the the graduates and the low tehnial lass will be so enourmous that the senergy for sustainable national development will be diffiult to build. More funds must be made available for primary researh and pilot projets that will explore tehnial and eonomi feasibility of ground breaking new tehnologies. 152
6 International Conferene on Afrian Development Issues (CU-ICADI) 215: Materials Telmology Trak The suess of these tasks will require the helps of the governments, orporate bodies, missionary agenies and well- meaning Nigerians. Only then will the nation be repositioned for sustainable national development. ACKNOWLEDGMENT The authors wish to thank the Chanellor and the Management of Covenant University for the platform made available for this researh. REFERENCE [1] WSA (World Steel Assoiation), 212 "Sustainablesteel-at -the-ore of-a-green-eonomy", aessed 28 January, 215. [2] A.N. Ede, E.O. Egunjobi, G.O Bamigboye, and J. Ogundej i, Assessment of Quality of Steel Reinforing Bars Used in Lagos, Nigeria International Researh Journal of Innovative Engineeringwww.irjie.om Volume!, Issue 3 of Marh 215. [3] WSA, 214. "Constrution", aessed 28 January, 215. [4] A.N. Ede, and J.O. Agbede, Use of Coonut Husk Fibre for Improved Compressive and Flexural Strength of Conrete, International Journal of Sientifi and Engineering Researh, 6(1), 215, pp [5] C. Arya, Design of Strutural Elements: Conrete, Steelwork, Masonry, and Timber Designs to British Standards and Euro odes, (3rd Edition; Taylor & Franis, London, 29). [6] A.N. Ede, O.M. Olofinnade,. Joshua (214). Experimental Investigation of Yield Strengths of Steel Reinforing Bars Used in Nigerian Conrete Strutures, International Journal of Sientifi and Engineering Researh IJESER, Volume 5, Issue 4, pp [7] A.N. Ede and J.O. Okundaye, Appraisal of Timber as Strutural Members for Residential Buildings in Nigeria, International Journal of Engineering & Tehnology IJET-IJENS Vol:l4 No:Ol,214, pp.l [8] B. Davison & G.W. Owens (23). Steel Designers Manual, 6th Edition. London: Blakwell Publishing. [9]. Ama Nti Osei, (215). 'Steely reserve required for takeoff The Afrian Report, No. 68, pp. 2-3 Paris, Frane. [1] AN. Ede (211): Measures to Redue the High Inidene of Strutural Failures in Nigeria.Journal of Sustainable Development in Afria, Volume 13, No.1, pp [11] Businessday, 215, "FG ommissions N6bn steel mill in Sagamu", Nigerian Businessday newspaper Aessed 3th January, 215. [12] WSA, 214. World Steel in Figures 214, World Steel Assoiation 214, ISBN [13] W. Bank, "World Development Indiators database", World Bank, 16 Deember 214, df, aessed 15th January, 215. [14] W.P. Review, "214 World Population Review", aessed 15th January, 215. [15] A.N. Ede, (215). "Steel is not delivering" The Afrian Report, No. 7, pp. 6, Paris, Frane. 153
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