The Federal Government of Nigeria, led by the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu signed a memorandum of understanding (MoU).
The agreement, signed in Moscow with the original builders of the Ajaokuta Steel Plant, Tyazhpromexport (TPE) and their consortium members (including Novostal M and Proforce Manufacturing Limited), focuses on the rehabilitation, completion and operation of both the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
The MoU follows preliminary inspections conducted by the Russian consortium at the Ajaokuta Steel Plant and the Itakpe mining site in August 2024. Prince Shuaibu emphasised that this initiative supports the industrialisation of Nigeria and aims to reduce the over $4 billion spent annually on steel imports, ultimately conserving foreign exchange.
During the visit, the Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev who expressed the consortium’s readiness to fulfill the MoU’s expectations. They also inspected Novostal M’s facilities, which boast an Electric Arc Furnace capacity of 1.2 million metric tonnes of steel per year, employing approximately 3,900 workers.
Permanent secretary of the Ministry of Steel Development, Dr. Chris Isokpunwu reaffirmed the government’s commitment to reviving the Ajaokuta Steel Project and NIOMCO. The president of Metallurgical Holding, Novostal M, Demchenko Ivan Ivanovich, committed to providing a detailed project proposal after auditing the plant.
TPE’s general-director, Mr. Egorov Anatolevich and Proforce Manufacturing’s group managing director, Mr. Adetokunbo Ogundeyin reiterated their commitment to the project, highlighting its importance for Nigeria’s economic development and the need for a supportive environment from the government.
The successful implementation of this MoU is projected to create over 500,000 direct and indirect jobs and significantly contribute to Nigeria’s economy, aligning with President Bola Tinubu’s goal of growing the economy to over $1 trillion by 2030.
The minister’s delegation included key officials from the Ministry of Steel Development and administrators from Ajaokuta Steel Company and NIOMCO.
