The Federal Government of Nigeria has officially signed a Memorandum of Understanding (MoU) with Messrs Tyazhpromexport (TPE) and its consortium, marking a significant step toward the rehabilitation, completion, and operation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
The agreement was finalized during a working visit to Moscow from September 14-21, 2024, led by the Minister of Steel Development, Prince Shuaibu Abubakar Audu. A statement from the Ministry, issued by Salamatu Jibaniya, Head of Press and Public Relations, confirmed that the signing followed a preliminary inspection of the facilities by the Russian consortium in August 2024.
Prince Shuaibu emphasized that this collaboration aligns with President Bola Tinubu’s vision for industrialization and aims to drastically reduce Nigeria's annual steel import bill, estimated at over $4 billion. “This is a bold step toward establishing a sustainable industrial base in Nigeria,” he stated, noting that revitalizing the steel sector will not only save foreign exchange but also bolster the economy.
The Nigerian delegation met with key Russian officials, including Deputy Minister of Industry and Trade Alexey V. Gruzdev, who assured the delegation of the consortium's commitment to the project's success. The delegation also toured Novostal M’s advanced facility in Balakovo, which boasts an annual capacity of 1.2 million metric tonnes of steel.
The revival of the Ajaokuta Steel Plant and NIOMCO is expected to generate over 500,000 direct and indirect jobs and significantly contribute to the national economy, supporting the goal of achieving a $1 trillion economy by 2030.
Dr. Chris Osa Isokpunwu, Permanent Secretary of the Ministry, reaffirmed the government's dedication to revamping the steel project, highlighting its importance for national development.
This renewed commitment comes after previous attempts to revitalize the Ajaokuta facility faced delays, including a planned MoU that fell through during the COVID-19 pandemic. In the 2024 budget, the government allocated N4.45 billion for the Ajaokuta Steel Company, alongside a request for N35 billion in funding to kickstart operations.
Minister Audu indicated that the overall cost of reviving the Ajaokuta steel mill could range from $2 billion to $5 billion, underscoring the scale of the undertaking ahead.
