‘Border closure blocks N504bn losses in steel’

A steel manufacturer has said the closure of Nigerian land borders is having positive impact on the steel industry as local steel manufacturers are able to steel their stocks and service their bank loans.

Dr. Kamorudeen Yusuf, the GMD/CEO Kam Holdings Ltd and the Chairman Basic Metal, Iron & Steel Fabricated Products told journalists in an interview in Abuja that the closure of the steel is also blocking huge financial leakages’ that otherwise would have been lost to smugglers.

“I can tell you that from 2016 and till July 2019, Nigeria has lost over 2 million tonnes of steel,” adding that the value is worth over N504bn, about $1.7bn.

“So we have seen a lot of positive impact on the border closure, we are selling our stock and we are now able to service our loans from the banks,” he stated.

Dr. Yusuf who backed the border closure also said: “I can tell you that the best thing that has ever happened to Nigeria is the border closure. We are currently losing huge employment due to smuggling of steel into Nigeria. We are not getting employments for our youth.

“Even the steel mills that the governed had privatized (Jos Rolling Steel Mill, Katsina Rolling Steel Mill, Osogbo, Rolling Steel Mill) are not doing well because of smuggling and dumping of steel into Nigeria,” he said.

According to him, several steel companies in Nigeria have been shut down due to activities of smugglers and the industry is at the verge of losing about 20,000 jobs again due to smugglers.

He said CBN is the only bank supporting manufacturers with long term funds as the commercial banks only deal in short term credit facilities.