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The Federal Government of Nigeria has entered into a Memorandum of Understanding (MoU) with a Russian consortium, led by Tyazhpromexport (TPE), to rehabilitate, complete, and operate the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
This significant development was formalized in Moscow, Russia, where Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, led a delegation to finalize the agreement.
In a statement released by the Ministry of Steel Development’s Head of Press and Public Relations, Salamatu Jibaniya, it was revealed that the working visit from 14th to 21st September 2024 was focused on signing the MoU with the Russian firm and its partners, Novostal M and Proforce Manufacturing Limited.
“The signing of this MoU is a bold step towards industrializing Nigeria,” said Prince Audu.
“The revival of the steel sector will not only reduce Nigeria’s dependence on imported steel products—which costs the nation over $4 billion annually—but will also help conserve our foreign exchange.”
He added, “This partnership is in line with President Bola Tinubu’s vision of strengthening Nigeria’s industrial base. Revitalizing Ajaokuta Steel and NIOMCO is key to achieving this goal.”
The statement also highlighted that the Russian consortium had previously visited the Ajaokuta Steel Plant and the Itakpe Iron Ore Mining site in August 2024 for preliminary inspections, which led to the signing of the agreement.
During their visit to Russia, the Nigerian delegation met with Russia’s Deputy Minister of Industry and Trade, Mr. Alexey V. Gruzdev.
The Russian consortium, led by TPE, assured the Nigerian delegation of their readiness to meet all expectations laid out in the agreement.
The Nigerian delegation also visited the facilities of Novostal M, located in Balakovo, Saratov region, which boasts an electric arc furnace with an annual capacity of 1.2 million metric tons of steel products. The facility employs over 3,900 workers.
“We were impressed by the scale of operations we witnessed,” remarked Prince Audu. “It gives us confidence in their capability to deliver on this project.”
Permanent Secretary of the Ministry of Steel Development, Dr. Chris Osa Isokpunwu, reaffirmed Nigeria’s commitment to reviving the Ajaokuta Steel Project and NIOMCO.
He stated, “This is a critical project that will not only create thousands of jobs but also enhance Nigeria’s industrial potential.”
The President of Metallurgical Holding, Novostal M. Demchenko, Ivan Ivanovich, expressed the consortium’s readiness to present a detailed proposal after conducting a comprehensive audit of the Ajaokuta plant.
He remarked, “We are eager to begin this project, which is crucial for Nigeria’s economic development.”
In a show of support, the General Director of TPE, Mr. Egorov Sergei Anatolevich, and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin, emphasized their commitment to ensuring the success of the project.
“We are fully invested in making this project a reality,” said Mr. Ogundeyin.
“The Nigerian government has a critical role to play by providing the right environment for this transformation.”
Both parties are optimistic that once fully implemented, the MoU will not only lead to the revival of Ajaokuta Steel and NIOMCO but also create over 500,000 direct and indirect jobs for Nigerians.
This, they believe, will contribute significantly to President Tinubu’s goal of growing Nigeria’s economy to over $1 trillion by 2030.
