The Federal Government of Nigeria, through the Ministry of Steel Development, has signed a Memorandum of Understanding with a Russian consortium to rehabilitate and operate the Ajaokuta Steel Company and the National Iron Ore Mining Company.
This agreement, formalized during a visit by Minister Prince Shuaibu Abubakar Audu to Moscow, represents a significant step in Nigeria’s efforts to revitalize its steel sector. The consortium, comprising Tyazhpromexport, Novostal and Proforce Manufacturing Limited, will lead the project aimed at boosting the steel industry in Kogi State, according to Nairametrics.
The statement read, “The Federal Government of Nigeria through the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu who led a Nigerian delegation to Moscow, Russia from 14th – 21st September, 2024, on a working visit, has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant Messrs, Tyazhpromexport (TPE) and members of their consortium namely; Novostal M and Proforce Manufacturing Limited for the Rehabilitation, Completion and Operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) in Kogi State, Nigeria.”
The MoU signing follows a visit in August 2024, during which the Russian-led consortium inspected the steel and iron ore mining facilities in Ajaokuta and Itakpe. This inspection was crucial in informing the terms of the agreement aimed at revitalizing Nigeria’s steel industry.
Prince Shuaibu highlighted that the project aligns with President Bola Tinubu’s mandate to industrialize Nigeria and decrease reliance on imported steel, which costs around $4 billion annually.
By restoring operations at the Ajaokuta Steel Plant and NIOMCO, Nigeria aims to bolster its manufacturing base and save substantial foreign exchange.
This revitalization effort is anticipated to create over 500,000 direct and indirect jobs, significantly contributing to the economy. It supports President Tinubu’s goal of achieving a $1 trillion economy by 2030, emphasizing the project’s potential economic impact.
During their working visit to Russia from September 14 to 21, 2024, the Nigerian delegation engaged with key stakeholders, including the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev.
They also toured Novostal M’s advanced facility in the Saratov region, further strengthening cooperation in the steel sector.
The Permanent Secretary of the Ministry of Steel Development, Dr. Chris Osa Isokpunwu reaffirmed Nigeria’s commitment to the project, expressing optimism that it will enhance the nation’s industrial capacity and drive economic growth.
The federal government under the previous administration of Muhammadu Buhari had announced plans to sign an MoU with a Russian firm for the resuscitation of the Ajaokuta Steel Rolling Mill in 2020. However, that agreement did not materialize at the time.
