FG Signs MoU With Russian Firm To Revive Ajaokuta Steel Plant, Says It Will Create 500,000 Jobs
By: Abdulwasiu Akintunde
The Federal Government has entered into a new agreement with Tyazhpromexport, the firm behind the Ajaokuta Steel Plant, to rehabilitate, complete, and manage both the steel plant and the National Iron Ore Mining Company (NIOMCO).
OPEN TELEVISION NAIJA (OTN) News gathered that the Minister of Steel Development, Shuaibu Audu, signed the Memorandum of Understanding (MoU) on behalf of Nigeria in Moscow, Russia, as revealed in a Friday statement from the ministry's spokesperson, Salamotu Jibaniya.
The Nigerian delegation visited Russia from September 14 to 21, 2024, to formalize the deal.
The Ajaokuta Steel Complex, which has been inactive since its conception in 1979, was originally designed to foster Nigeria’s industrial growth.
However, production has stalled for decades due to corruption and legal challenges. The plant, once revived, is expected to spark industrial activities critical to Nigeria's economic diversification efforts.
Since taking office, Minister Audu has promised that the steel complex will soon begin production, aiming to reduce Nigeria’s dependence on steel imports. Experts from Tyazhpromexport visited the Ajaokuta plant and the Itakpe iron ore mining site for inspections in August, paving the way for the MoU.
The agreement also includes Novostal M and Proforce Manufacturing Limited, which are part of Tyazhpromexport’s consortium.
The Nigerian delegation inspected Novostal M’s facilities in Balakovo, Russia, as part of the visit.
Minister Audu hailed the agreement as a major step toward industrializing Nigeria’s economy, stating that the steel sector’s revival would cut down on Nigeria’s annual $4 billion steel imports and conserve foreign exchange.
Permanent Secretary of the Ministry, Chris Isokpunwu, reinforced the Government’s commitment to revitalizing both Ajaokuta and NIOMCO.
Meanwhile, the Russian consortium pledged to meet the MoU’s goals, with Novostal M President, Demchenko Ivan Ivanovich, promising to submit a detailed project proposal after conducting a thorough audit of the plant.
Tyazhpromexport's General Director, Egorov Anatolevich, and Proforce Managing Director, Adetokunbo Ogundeyin, expressed their dedication to the project, highlighting its significance for Nigeria’s economic development.
They emphasized that full implementation of the MoU could create over 500,000 direct and indirect jobs and significantly boost Nigeria’s economy, aligning with President Bola Tinubu’s vision of growing the economy to over $1 trillion by 2030.
The consortium also called on the Nigerian Government to create a favorable environment to ensure the project’s success.
Joining Minister Audu on the trip were Permanent Secretary, Isokpunwu, Ajaokuta Steel Company Limited Sole Administrator, Sumaila Abdul-Akaba, and NIOMCO acting Sole Administrator, Loto Isinmidun, among others.
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