The Nigerian Government has signed a Memorandum of Understanding (MoU) with Messrs Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant, to rehabilitate, complete, and operate the plant, along with the National Iron Ore Mining Company (NIOMCO) in Kogi State.
The agreement was formalized during a working visit led by Prince Shuaibu Audu, Minister of Steel Development, to Moscow from September 14-21, 2024.
This collaboration follows a preliminary inspection conducted by a TPE-led consortium at the Ajaokuta Steel Plant and the Itakpe mining site in August 2024, which set the stage for this important agreement.
In a statement from Salamatu Jibaniya, Head of Press & Public Relations at the Ministry of Steel Development, the minister emphasized the significance of the MoU as a pivotal step toward fostering industrialization in Nigeria. He noted that revitalizing the steel sector would reduce the country’s annual steel imports, currently estimated at over $4 billion, thereby conserving foreign exchange.
During the visit, the Nigerian delegation engaged with Alexey V. Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation. The TPE consortium assured the Nigerian team of their commitment to fulfilling the expectations outlined in the MoU. The delegation also visited Novostal M’s facilities in Balakovo, which operates an Electric Arc Furnace with a capacity of 1.2 million metric tonnes of steel products annually and employs 3,900 workers.
The Permanent Secretary of the Ministry of Steel Development, Chris Osa Isokpunwu, reaffirmed the Nigerian Government’s dedication to revamping the Ajaokuta Steel Project and NIOMCO. Ivan Demchenko, President of Metallurgical Holding “Novostal – M,” pledged to submit a detailed project proposal following a comprehensive audit of the plant.
Both Egorov Sergei Anatolevich, General Director of TPE, and Mr. Adetokunbo Ogundeyin, Group Managing Director of Proforce Manufacturing Limited, expressed their commitment to the project, highlighting its importance for Nigeria’s economic development. They called for an enabling environment from the Nigerian Government to facilitate successful implementation.
The parties expressed optimism that the MoU’s execution would not only revitalize the Ajaokuta Steel Company Limited (ASCL) and NIOMCO but also create over 500,000 direct and indirect jobs for Nigerians. Furthermore, it could significantly boost the economy, contributing to President Tinubu’s goal of growing the economy to over $1 trillion by 2030.
The minister’s delegation included key officials such as Dr. Chris Isokpunwu, Engr. Sumaila Abdul-Akaba (Sole Administrator of ASCL), Engr. Loto Festus Isinmidun (Acting Sole Administrator of NIOMCO), and other ministry representatives, all focused on this transformative initiative.
