The Nigerian government has signed a huge agreement with a Russian consortium to revive the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State. The agreement, which is a Memorandum of Understanding (MoU), was signed by Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, during a visit to Moscow, Russia.
This partnership involves Messrs. Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant, alongside Novostal M and Proforce Manufacturing Limited. These companies will be responsible for the rehabilitation, completion, and operation of the steel plant and the iron ore mining company.
A statement released by the Ministry of Steel Development highlighted that the Russian consortium had visited both the Ajaokuta Steel Plant and the NIOMCO site in August 2024. Their visit was part of preliminary inspections that led to the signing of the MoU in Russia. This move is seen as a major step toward completing the long-delayed Ajaokuta Steel Plant, which has been stalled for decades despite being a crucial part of Nigeria’s industrial goals.
The Minister, Prince Shuaibu Audu, emphasized that the completion of the steel plant and the revival of the iron ore mining company are critical for Nigeria’s economic growth. He stated that a functional steel sector would reduce Nigeria’s reliance on imported steel, which costs the country over $4 billion annually. In addition, it would help save foreign exchange and create new opportunities for industrialization within Nigeria.
During the visit to Moscow, the Nigerian delegation met with the Russian Deputy Minister of Industry and Trade, Mr. Alexey V. Gruzdev. The Russian consortium, led by TPE, assured the Nigerian government of its commitment to fulfilling the expectations of the MoU.
The delegation also visited a steel plant operated by Novostal M in Balakovo, Russia. This facility produces 1.2 million metric tonnes of steel annually and employs nearly 4,000 workers. The visit provided the Nigerian team with insights into how the plant operates, including its private port, which receives raw materials for production.
Dr. Chris Osa Isokpunwu, the Permanent Secretary of the Ministry of Steel Development, reiterated Nigeria’s determination to complete the Ajaokuta Steel Project and NIOMCO. He stressed that the revival of these projects is key to transforming Nigeria’s industrial base.
The President of Novostal M, Demchenko Ivan Ivanovich, assured the Nigerian delegation that they would soon submit a detailed plan for completing the Ajaokuta Steel Plant following a comprehensive audit of the facilities. Both TPE’s General Director, Egorov Sergei Anatolevich, and Proforce Manufacturing Limited’s Group Managing Director, Mr. Adetokunbo Ogundeyin, expressed their commitment to the project. They also requested the Nigerian government provide a favorable environment for the project’s success.
The agreement is expected to create over 500,000 direct and indirect jobs for Nigerians. It also has the potential to significantly boost Nigeria’s economy, contributing to the goal set by President Tinubu to grow the country’s economy to over $1 trillion by 2030. This revitalization of the steel sector could play a crucial role in Nigeria’s industrial development, providing a solid foundation for economic diversification and growth.
The signing of the MoU between Nigeria and Russia marks a new chapter in the long-standing efforts to complete the Ajaokuta Steel Plant, with hopes that it will finally become operational and fulfill its potential as a key part of Nigeria’s industrial future.
