Nigeria Loses Another Foreign Investor as Aarti Steel Packs Up

After Microsoft, PZ Cussons, and other companies, Aarti Steel of India will be the sixth corporation to leave Nigeria in 2024.

In the first half of 2024, the Indian global steel manufacturer Aarti Steel is expected to become the sixth business to leave Nigeria.

Aarti Steel funded $20–30 million in 2017 to build a 120,000-seat cold-rolled mill in Ota, Ogun State. This plant was designed to supply steel for the manufacturing of household appliances, roofing sheets, metal furniture, filing cabinets, tables, chairs, and other items to Nigeria's downstream industries.

However, it seems that this investment has become less significant because the steel business has decided to sell its factory in Ota, Ogun State, and plans to leave Nigeria.

Following Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC as the five companies to depart from Africa's most populous nation in the first half of 2024, this will be the sixth corporation to do so.

High debt levels, a difficult economic climate, the devaluation of Nigeria's currency, inflation rates above 33 percent, and rising oil prices are some of the factors that impact the decision to leave Nigeria.

Major firms have reportedly submitted bids ranging from $50 million for the steel producer located in Ota, Ogun State, which has already been advertised for sale.

The choice to leave Nigeria is impacted by a number of variables, such as heavy debt loads, a difficult economic climate, the devaluation of Nigerian Naira, inflation rates above 33 percent, and rising energy expenses.

Major corporations have already placed offers on the Ota, Ogun State-based steel producer, with estimates ranging from $50 million to $100 million. The company has already been offered for sale.

African Industries and Bharti are vying for the $50 million to $100 million deal to buy the Indian-owned steel company.

It is expected that the sale procedure will be completed in the upcoming months.