The Federal Government of Nigeria has entered into a Memorandum of Understanding with Tyazhpromexport, the builders of the Ajaokuta steel plant, aimed at rehabilitating, completing, and operating the facility as well as the National Iron Ore Mining Company. The Minister of Steel Development, Shuaibu Audu, signed the agreement during a Nigerian delegation’s visit to Moscow from September 14 to 21, as reported by the ministry’s spokesperson, Salamotu Jibaniya.
The Ajaokuta Integrated Steel Complex, which was conceived in 1979, has faced significant challenges over the decades, remaining non-operational due to corruption and legal issues. Despite its intended role in driving industrial and economic activities crucial for diversifying Nigeria’s economy, the complex has yet to produce steel. However, Minister Audu has committed to revitalizing the plant and ending the country’s dependence on steel imports.
Preliminary inspections were conducted at the steel plant and the Itakpe iron ore site in August, leading to the MOU’s signing. The consortium involved in the agreement, which includes Novostal M and Proforce Manufacturing Limited, expressed their readiness to meet the expectations outlined in the MOU. The Nigerian delegation also visited Novostal M’s facilities in Balakovo, Russia, to further assess capabilities.
Audu emphasized that this agreement marks a significant step toward establishing a sustainable industrial foundation in Nigeria. He noted that reviving the steel sector could drastically reduce the country’s annual steel imports, valued at over $4 billion, and save foreign exchange. The Russian consortium representatives assured their commitment to the project, highlighting the potential for creating over 500,000 jobs and significantly contributing to Nigeria’s economic growth ambitions.
