The Nigerian government has signed a deal with a Russian consortium to revive the Ajaokuta Steel Plant, a key move in Nigeria’s industrial development.
The National Iron Ore Mining Company (NIOMCO) and the long-stalled Ajaokuta Steel Plant will undergo rehabilitation and completion thanks to an agreement between the Nigerian government and the Russian engineering firm Tyazhpromexport.
According to a statement issued by the ministry’s spokesperson Salamotu Jibaniya, Nigeria’s Minister of Steel Development, Shuaibu Audu, signed the deal in Moscow as part of a delegation visit to Russia from September 14 to September 21, 2024.
The original goal of the Ajaokuta Steel Complex was to spearhead Nigeria’s industrial revolution, but it has lain inactive since its establishment in 1979 as a result of corruption and legal issues.
It continues to be an essential part of the nation’s aspirations to diversify its economy through industrial development, even after decades of inaction.
Audu underlined that Nigeria’s reliance on steel imports, which come at a cost of more than $4 billion a year, must end if Ajaokuta Steel is to be revived.
Read Also: FG, Ex-CJN Onnoghen Approved for Out-of-Court Settlement
The most recent agreement comes after Tyazhpromexport’s technical specialists visited the Itakpe steel factory and iron ore mining location in August to conduct an inspection.
The restoration work will be carried out by Tyazhpromexport in accordance with the MoU in partnership with Novostal M and Proforce Manufacturing Limited. The Nigerian delegation also took a tour of Novostal M’s facilities in Balakovo, Russia, during their visit.
Declaring that the project has the potential to produce over 500,000 direct and indirect jobs, Audu lauded the agreement as a critical step toward building a solid industrial base for Nigeria’s economy.
With Novostal M President Demchenko Ivan Ivanovich affirming that a full proposal will be made following an audit of the plant, the Russian partners reaffirmed their commitment to the project.
In line with President Bola Tinubu’s goal of seeing the country’s GDP reach over $1 trillion by 2030, the full execution of the MoU is anticipated to considerably boost Nigeria’s economic growth.
Senior officials were present with the steel minister, including Sumaila Abdul-Akaba, the sole administrator of Ajaokuta Steel Company Limited, and Chris Isokpunwu, the permanent secretary of the steel ministry.
