FG and Russian Consortium Sign MoU to Revive Ajaokuta Steel Plant

Advertisements The Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel […]

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Ajaokuta Steel Plant

The Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant, Messrs. Tyazhpromexport (TPE), and their consortium partners, Novostal and Proforce Manufacturing Limited. This agreement is aimed at the rehabilitation, completion, and operation of both the Ajaokuta Steel Plant (ASP) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.

The move follows a visit by the Russian consortium to the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024, where they conducted preliminary inspections. This led to the signing of the MoU, with the Russian Federation agreeing to support the rehabilitation efforts.

The Minister of Steel Development, Shuaibu Audu, hailed the agreement as a major step towards establishing a strong foundation for Nigeria’s industrialization. He emphasized that the revitalization of the steel sector would significantly reduce Nigeria’s reliance on imported steel products, which costs the country over $4 billion annually, thus preserving foreign exchange.

During a working visit to Moscow, Audu met with the Deputy Minister of Industry and Trade of the Russian Federation, Alexey Gruzdev, where both parties expressed confidence in the success of the partnership. The President of Metallurgical Holding, “Novostal – M”, Demchenko Ivan Ivanovich, confirmed their readiness to submit a detailed proposal for the project following a thorough audit of the steel plant.

Additionally, the General Director of Messrs. TPE, Egorov Anatolevich, and the Group Managing Director of Proforce Manufacturing Limited, Adetokunbo Ogundeyin, reaffirmed their commitment to ensuring the successful rehabilitation and operation of the steel plant and the iron ore mining company.

This collaboration is expected to mark a significant turning point in Nigeria’s steel industry, which has long been seen as a key driver for economic growth and development.

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