The Federal Government of Nigeria and Messrs Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant, have signed a Memorandum of Understanding (MoU) for the rehabilitation, completion, and operation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State. This agreement marks a significant step towards Nigeria’s industrialization and economic growth.

The Ministry of Steel Development, through its Head of Press & Public Relations, Salamatu Jibaniya, confirmed the signing in a statement on Friday. The MoU was formalized by Nigeria’s Minister of Steel Development, Prince Shuaibu Audu, who led a Nigerian delegation to Moscow, Russia, from September 14-21, 2024, on a working visit.

The Russian Federation accepted the proposal following a consortium led by TPE’s visit to the Ajaokuta Steel Plant and the Iron Ore Mining site in Itakpe in August 2024 for preliminary inspections. This led to the official signing of the MoU.

Prince Shuaibu Audu emphasized that reviving the steel sector is a crucial step toward reducing Nigeria’s $4 billion annual steel import bill and preserving valuable foreign exchange. He also highlighted the potential of the steel sector to drive industrialization and create jobs.

During the Moscow visit, the Nigerian delegation met with Alexey V. Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation, and the TPE-led consortium. The Russian partners reassured Nigeria of their readiness to meet the MoU’s expectations.

The delegation also toured the facilities of Messrs Novostal M in Balakovo, Saratov, where the company operates a plant with a 1.2 million metric tonne capacity of steel products annually and a workforce of 3,900. The team also visited the private port facility of the company, where raw materials for operations are received.

Dr. Chris Osa Isokpunwu, Permanent Secretary at the Ministry of Steel Development, affirmed the Nigerian government’s commitment to revamping the Ajaokuta Steel Project and NIOMCO.

The President of Metallurgical Holding, Novostal-M, Demchenko Ivan Ivanovich, assured that a detailed proposal for the project would be submitted following a comprehensive audit of the plant.

General Director of TPE, Egorov Sergei Anatolevich, and Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin, expressed their commitment to the project, recognizing its importance for Nigeria’s economic development. They requested an enabling environment to facilitate progress.

If fully implemented, the MoU could lead to the creation of over 500,000 direct and indirect jobs in Nigeria and significantly boost the country’s economy, potentially contributing to President Bola Tinubu’s goal of growing the economy to over $1 trillion by 2030.

Accompanying the Minister on the trip were Dr. Chris Isokpunwu, Engr. Sumaila Abdul-Akaba (Sole Administrator of Ajaokuta Steel Company Limited), Engr. Loto Festus Isinmidun (Acting Sole Administrator of NIOMCO), Mr. Umar Adamu Tsoho (Acting Director of Steel & Non-Ferrous Metals), and Mr. Anekwe Patrick Chinwuba (Technical Adviser).