Abuja, Nigeria – The Federal Government of Nigeria and Russian company that built Ajaokuta Steel Plant, Tyazhpromexport (TPE), have signed a Memorandum of Understanding (MoU) in a bid to facilitate the rehabilitation, completion, and operation of both the Ajaokuta Steel Plant and the National Iron Ore Mining Company, located in Kogi State. The MoU was signed by the Minister of Steel Development, Prince Shuaibu Audu, who led a Nigerian delegation to Moscow, from September 14th to 21st, 2024, for a working visit.
The head of the Press & Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya in a statement released on Friday explained that the Russian Federation accepted the proposal after a consortium led by Tyazhpromexport (TPE) visited the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024 for preliminary inspections, which paved the way for the signing of the of the agreement.
According to the statement, Prince Audu described the development as a bold step towards creating a sustainable base for the industrialization 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 $4 billion annually and will help save scarce foreign exchange.
During the visit, the Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Alexey Gruzdev. The delegation conducted an inspection of the facilities at Novostal M, located in Balakovo in the Saratov region. The team also visited the company’s private port facility, where they received different raw materials for their operations.
The consortium, led by Tyazhpromexport (TPE), assured the Nigerian delegation of their readiness to meet the expectations outlined in the MoU with the Nigerian government. Moreso, the President of Metallurgical Holding “Novostal-M,” Demchenko Ivan Ivanovich, assured the Nigerian government that they are prepared to submit a detailed proposal for the Ajaokuta Steel Plant project following a comprehensive audit of the facility. In the same vein, the General Director of Tyazhpromexport (TPE), Egorov Sergei Anatolevich, and the Group Managing Director of Proforce Manufacturing Limited, Adetokunbo Ogundeyin, reaffirmed their commitment to the project, recognizing its pivotal role in Nigeria’s economic development. They also urged the Nigerian government to create an enabling environment to support the project’s success.
Both parties expressed optimism that the full implementation of the Memorandum of Understanding (MoU) would lead to the revival of the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO). The project is expected to generate over 500,000 direct and indirect jobs for Nigerians and significantly boost the economy, contributing toward President Tinubu’s vision of growing Nigeria’s economy to over $1 trillion by 2030.
