September 20, (THEWILL) – Nigeria has signed a Memorandum of Understanding (MoU) with a Russian consortium for the rehabilitation, completion, and operation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
A statement by the Head of the Press & Public Relations Department, Ministry of Steel Development, Salamatu F. Jibaniya, said the MoU was signed by Minister of Steel Development, Prince Shuaibu Abubakar Audu, who led a Nigerian delegation on a working visit to Moscow from September 14 to 21, 2024.
The consortium involved in the agreement includes Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant, as well as Novostal M and Proforce Manufacturing Limited.
This development follows a preliminary visit by the consortium to the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024. After a comprehensive inspection, the Russian Federation accepted the call for partnership, leading to the signing of the MoU.
The Minister said the agreement is in accordance with the president’s mandate to revive and complete the steel projects, which are critical to Nigeria’s economic transformation.
“The revitalisation of the steel sector will help reduce the $4 billion annual steel importation costs and conserve much-needed foreign exchange for Nigeria”, he said.
During the visit, the Nigerian delegation also met with Mr. Alexey V. Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation. The Russian consortium, led by TPE, reaffirmed its commitment to meeting the objectives of the MoU. Additionally, the delegation toured Novostal M’s steel production facility in Balakovo, which has a capacity of 1.2 million metric tonnes of steel per year and employs 3,900 workers.
Dr Chris Osa Isokpunwu, Permanent Secretary of the Ministry of Steel Development, echoed the Nigerian government’s determination to see the Ajaokuta and NIOMCO projects through.
In support, Mr Demchenko Ivan Ivanovich, President of Novostal M, assured the delegation that a comprehensive proposal for the project would be submitted after a detailed audit of the plants.
The consortium members, including Mr Egorov Sergei Anatolevich of TPE and Mr Adetokunbo Ogundeyin, Group Managing Director of Proforce Manufacturing Limited, expressed optimism that the collaboration would play a key role in Nigeria’s economic growth.
