Breaking: FG signs MoU with Russian firms to revive Ajaokuta Steel Plant, National Iron Ore Mining Company

Prince Shuaibu emphasized that the project is in line with President Bola Tinubu’s mandate to industrialize Nigeria and reduce the country’s heavy reliance on imported steel, which costs an estimated $4 billion annually.

By restoring operations at the Ajaokuta Steel Plant (ASP) and NIOMCO, Nigeria hopes to strengthen its manufacturing base and save significant foreign exchange.

This revitalization effort is expected to create over 500,000 direct and indirect jobs, contributing billions of dollars to the economy and supporting President Tinubu’s goal of achieving a $1 trillion economy by 2030.

During their working visit to Russia from September 14 to 21, 2024, the Nigerian delegation met with key stakeholders, including Mr. Alexey V. Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation, and toured Novostal M’s state-of-the-art facility in the Saratov region.

The plant, with a capacity to produce 1.2 million metric tonnes of steel annually, demonstrated the consortium’s readiness to deliver on the MoU. The Russian partners, including the General Director of TPE, Mr. Egorov Sergei Anatolevich, and Proforce’s Group Managing Director, Mr. Adetokunbo Ogundeyin, pledged their commitment to the project’s success and called on the Nigerian government to provide an enabling environment to ensure smooth operations.

The Permanent Secretary of the Ministry of Steel Development, Dr. Chris Osa Isokpunwu, reaffirmed Nigeria’s dedication to the project, with the hope that it would boost the nation’s industrial capacity and economic growth.

What you should know 

The federal government under the previous administration of Muhammadu Buhari had said that it would sign an MoU with a Russian firm for the resuscitation of Ajaokuta Steel Rolling Mill in 2020.

This was after a Russian-based firm, MetProm Group, concluded an assessment of the Ajaokuta Steel Complex.

However, it appears that the MoU was not signed due to the COVID-19 pandemic, which disrupted global business activities.

Nairametrics earlier reported that the federal government allocated N4.45 billion to the moribund Ajaokuta Steel Company in the 2024 budget.

This was as it sought N35 billion from funding institutions to revive the light steel mill in the Ajaokuta Steel Plant, which has been dormant for over 42 years.

The Minister of Steel Development, Shuaibu Audu, earlier said that reviving the Ajaokuta steel mill will cost something in the range of $2 billion to $5 billion.