Nigeria, Russia sign MoU to Complete, Operate Ajaokuta Steel Company

Nigeria has signed a Memorandum of Understanding, MoU, with Russia to rehabilitate, complete and operate the Ajaokuta Steel Plant, and National Iron Ore Mining Company, NIOMCO, in Kogi State, North central Nigeria.

The MoU was signed by the Nigerian Minister of Steel Development, Prince Shuaibu Abubakar Audu with a Russian consortium, the builders of Ajaokuta Steel Plant Messrs, Tyazhpromexport, TPE in Moscow, the Russian capital, a statement from the ministry said.

The parties expressed their optimism that the full implementation of the MoU will facilitate the revival of both Ajaokuta Steel Company Limited (ASCL) and NIOMCO and could create over 500,000 direct and indirect jobs for Nigerians.

“It would also increase the size of the economy by billions of dollars thus contributing immensely to President Tinubu’s desire to grow the economy to over $1trillion by 2030.”

The statement, signed by the Head, Press & Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya, noted that the Minister was on a work visit between 14 – 21 September, 2024, and led a Nigerian delegation to Moscow to sign the MoU with the Russian firm and members of their consortium, namely; Novostal M and Proforce Manufacturing Limited.

The Minister referred to the MoU as a bold step towards creating a sustainable base for the industrialisation of the Nigeria economy.

He noted 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.”

The statement also made it known that “the call was accepted by the Russian Federation when a consortium led by Messrs, TPE visited the Ajaokuta Steel Plant in Ajaokuta and the Iron Ore Mining site at Itakpe in August, 2024 for preliminary inspections leading to the invitation for the signing of the MoU.

The Nigerian delegation led by the Nigeria Minister of Steel also inspected the facilities of Messrs. Novostal M located in Balakovo in the Saratov region.

The Plant which was in full operation during the visit has an Electric Arc Furnace capacity of 1.2 Million metric tonnes of Steel products per annum with staff strength of 3,900 workers.

The team also inspected the private port facility of the Company where they received different raw materials for their operations.

The Permanent Secretary, Ministry of Steel Development, Dr. Chris Osa Isokpunwu in his remark affirmed the commitment of the Nigerian Government to revamp the Ajaokuta Steel Project and National Iron Ore Mining Company, Itakpe.

The President of Metallurgical Holding, “Novostal – M” Demchenko Ivan Ivanovich assured the delegation of their readiness to submit a detailed proposal for the project after the comprehensive audit of the Plant.

The General Director of Messrs. TPE, Mr. Egorov Sergei Anatolevich and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin assured the Nigerian delegation of their commitment to the project because of its critical role in the overall economic development of Nigeria and requested for the provision of an enabling environment by the Nigerian Government.