Nigeria has signed a significant agreement with a Russian consortium to rehabilitate and complete the Ajaokuta Steel Company Limited (ASP) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
The Memorandum of Understanding (MoU) was signed during a working visit led by Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, to Moscow from September 14th to 21st, 2024.
The Russian consortium, led by Messrs. Tyazhpromexport (TPE), along with Novostal M and Proforce Manufacturing Limited, will oversee the rehabilitation and operation of these strategic industrial assets. The agreement comes on the heels of an earlier visit by TPE to the Ajaokuta Steel Plant and the iron ore mining site at Itakpe in August 2024, which facilitated the move to formalize the MoU.
Speaking on the agreement, Prince Shuaibu emphasized that reviving Nigeria’s steel sector is crucial for reducing the country’s heavy reliance on steel imports, which currently costs over $4 billion annually. The initiative aligns with President Bola Tinubu’s administration’s goal of creating a sustainable industrial base for Nigeria’s economy, which is expected to generate significant foreign exchange savings.
During the visit to Russia, the Nigerian delegation held strategic meetings with the Deputy Minister of Industry and Trade of the Russian Federation, Alexey V. Gruzdev. The consortium assured Nigerian officials of their full readiness to meet the MoU’s expectations, marking a new era for Nigeria’s steel sector.
Prince Shuaibu and his team also visited the Novostal M facility in Balakovo, Russia, which operates a plant with a 1.2 million metric tonne capacity and employs over 3,900 workers. This facility stands as a testament to what Nigeria aims to achieve through the revitalization of its steel sector.
The successful rehabilitation of the Ajaokuta Steel Plant and NIOMCO will play a pivotal role in Nigeria’s industrial development, potentially unlocking new job opportunities and positioning the country as a key player in global steel production.
