If Nigeria was serious about diversifying her economy the first thing she would do post-coronavirus would be to set up a scrap metal directorate

Ayo Akinfe

(1) We can complain, criticise and argue until we are blue in the face but the fact remains that Nigeria’s economy will not get any better until we industrialise. Until we start producing steel in significant quantities, all this talk about economic diversification is just hot air

(2) Even with agriculture, how on earth are we going to make the sector work if we do not produce the tractors, combined harvesters, sorting machines, ploughs, etc. It is naive to think we can just go on the international market and buy 100,000 tractors just like that. Orders of that magnitude will take years to fulfil

(3) The day Nigeria starts producing steel in significant quantities will be the day the economic revival begins. I put it to you that if Nigeria produced 10,000 tonnes of steel tomorrow, it would send shockwaves across the international money markets. For starters, the naira would rally to unprecedented heights

(4) Not every nation on earth is fortunate to have iron ore deposits, so a way around it is the thriving scrap metal market. Japanese manufacturing for instance is hinged on the scrap metal sector. Of the 80m tonnes of scrap metal traded around the world every year, about 10% comes from Japan

(5) About 70% to 80% of Japan’s scrap metal exports go to South Korea, China and Taiwan. Of late, however, China has been restricting imports to protect its own local industry. Everyone realises the importance of this sector when it comes to manufacturing. If you produce scrap metal which sells for about $150 a tonne, you drastically reduce your production costs

(6) Metals without iron are known as non-ferrous. Common non-ferrous metals include copper, brass, aluminum, zinc, magnesium, tin, nickel, and lead. This is where Nigeria should be making a killing. Every scrapped car in the country or to be honest, across the West African sun-region should be converted into scrap metal

(7) Globally, the scrap industry was valued at more than $90bn as far back as 2012. Since 2010, the industry has added more than 15,000 jobs, and supports 463,000 workers, both directly and indirectly. Nigeria is simply not part of this movement and then we complain when people treat us like crap. You cannot be lagging behind the rest of humanity and expect to be treated like an equal

(8) In addition, scrap recycling also helps reduce greenhouse gas emissions and conserves energy and natural resources. For example, it diverts 121m tonnes of materials away from landfills. Do you also know that in the US, recycled scrap is the raw material for nearly 60% of steel, 50% of the copper and copper alloys, more than 75% of the paper industry's needs and 50% of aluminium?

(9) At the moment, Nigeria produces no iron ore, so if we are really serious about manufacturing, we simply have to get our scrap metal industry going. It is what will fuel the production of electricity transformers, automobiles, railway carriages, tractors, etc

(10) If Nigeria is really serious about weaning herself off crude oil, she needs to set up a scrap metal directorate today and set it a target of producing at least 5m tonnes a year. Just imagine the message that would send out to international manufacturers, especially automobile assembly plants