The Federal Government of Nigeria and the original builders of the Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), have signed a Memorandum of Understanding (MoU) for the rehabilitation, completion, and operation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company in Kogi State.
According to a statement released on Friday by Salamatu Jibaniya, Head of Press and Public Relations at the Ministry of Steel Development, the agreement was signed by the Minister of Steel Development, Prince Shuaibu Audu, who led a Nigerian delegation on a working visit to Moscow, Russia, from September 14th to 21st, 2024.
The Russian Federation accepted the proposal after a consortium led by TPE visited the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024 for preliminary inspections, paving the way for the signing of the MoU.
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The statement said, “Prince Shuaibu who is driving Mr. President’s mandate for the revitalization, completion and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) said this is a bold step towards creating a sustainable base for the industrialization of the Nigeria economy, noting that The revival of the Steel sector will also reduce importation of Steel products into Nigeria which is estimated at over $4billion annually and will help save scarce foreign exchange.”
During the visit, the Nigerian delegation met with Alexey V. Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation. The consortium led by Tyazhpromexport (TPE) assured the Nigerian delegation of their readiness to meet the expectations outlined in the Memorandum of Understanding (MoU) with the Nigerian Government.
The Nigerian delegation, led by the Minister of Steel Development, Prince Shuaibu Audu, also inspected the facilities of Messrs. Novostal M, located in Balakovo, Saratov region. The plant, which was fully operational during the visit, boasts an Electric Arc Furnace capacity of 1.2 million metric tonnes of steel products annually, with a workforce of 3,900 employees. The team also toured the company’s private port facility, where various raw materials for steel production are received.
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In his remarks, Dr. Chris Osa Isokpunwu, Permanent Secretary of the Ministry of Steel Development, reaffirmed the Nigerian Government’s commitment to revitalizing the Ajaokuta Steel Project and the National Iron Ore Mining Company (NIOMCO) in Itakpe.
Demchenko Ivan Ivanovich, President of Metallurgical Holding Novostal-M, expressed their readiness to submit a detailed proposal for the Ajaokuta project following a comprehensive audit of the plant. Additionally, Egorov Sergei Anatolevich, General Director of TPE, and Adetokunbo Ogundeyin, Group Managing Director of Proforce Manufacturing Limited, pledged their commitment to the project, citing its importance to Nigeria’s economic development.
They also urged the Nigerian Government to provide a conducive environment for its success.
The parties were optimistic that the full implementation of the MoU would lead to the revival of Ajaokuta Steel Company Limited (ASCL) and NIOMCO, potentially creating over 500,000 direct and indirect jobs and significantly boosting Nigeria’s economy. This could contribute to President Tinubu’s goal of growing the economy to over $1 trillion by 2030.
The Minister of Steel Development was accompanied by the Permanent Secretary, Dr. Chris Isokpunwu, the Sole Administrator of Ajaokuta Steel Company Limited, Engr. Sumaila Abdul-Akaba, Acting Sole Administrator of NIOMCO, Engr. Loto Festus Isinmidun, Acting Director of Steel & Non-Ferrous Metals, Mr. Umar Adamu Tsoho, and Technical Adviser Mr. Anekwe Patrick Chinwuba.
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