In a significant move to revitalize Nigeria’s steel industry, the Federal Government has signed a Memorandum of Understanding (MoU) with a Russian consortium, Tyazhpromexport (TPE), to rehabilitate, complete, and operate Ajaokuta Steel Plant and National Iron Ore Mining Company (NIOMCO) in Kogi State.
The MoU was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, in Moscow, Russia, during a working visit from September 14-21, 2024. This partnership aims to create a sustainable base for Nigeria’s industrialization and reduce steel product imports, which currently cost over $4 billion annually.
According to a statement by the Ministry of Steel Development, the Russian consortium, which includes Novostal M and Proforce Manufacturing Limited, will work with the Nigerian government to revive the steel sector. The statement reads, “The Federal Government of Nigeria through the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), for the rehabilitation, completion, and operation of Ajaokuta Steel Plant and National Iron Ore Mining Company (NIOMCO) in Kogi State.”
Prince Audu emphasized that this partnership is a bold step towards achieving President Tinubu’s mandate for the revitalization, completion, and operation of Ajaokuta Steel Plant and NIOMCO. He noted that the revival of the steel sector will reduce importation of steel products, save scarce foreign exchange, and create jobs.
During the visit, the Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev, and inspected the facilities of Novostal M in Balakovo, Saratov region. The plant, which has an Electric Arc Furnace capacity of 1.2 million metric tonnes of steel products per annum, employs 3,900 workers.
The Permanent Secretary, Ministry of Steel Development, Dr. Chris Osa Isokpunwu, reaffirmed the Nigerian government’s commitment to revamping the Ajaokuta Steel Project and NIOMCO. This partnership is expected to create over 500,000 direct and indirect jobs for Nigerians and contribute to Nigeria’s economic growth.
The signing of the MoU marks a significant milestone in Nigeria’s efforts to revitalize its steel industry and achieve economic diversification. With Russia’s expertise and Nigeria’s commitment, the Ajaokuta Steel Plant and NIOMCO are poised for a major turnaround.
