The Nigerian government has partnered with a Russian consortium to revive the Ajaokuta Steel Plant, a move expected to boost industrialization and economic growth. Read more about the landmark deal.
The Nigerian government has entered into a Memorandum of Understanding (MoU) with the Russian engineering company Tyazhpromexport to restore and finalize the long-delayed Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO).
This agreement was formalized in Moscow by Nigeria’s Minister of Steel Development, Shuaibu Audu, during a delegation visit to Russia from September 14 to 21, 2024, as reported by ministry spokesperson Salamotu Jibaniya.
The Ajaokuta Steel Complex, which has remained inactive since its establishment in 1979 due to issues of corruption and legal disputes, was originally designed to facilitate Nigeria’s industrial transformation.
Despite years of stagnation, it continues to be a vital element in the nation’s strategy to diversify its economy through industrial advancement.
Audu highlighted that revitalizing the Ajaokuta Steel Plant is crucial for reducing Nigeria’s reliance on steel imports, which currently costs the country over $4 billion each year. This recent agreement follows a visit in August by technical experts from Tyazhpromexport to assess the steel plant and the iron ore mining site in Itakpe.
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Under the terms of the MoU, Tyazhpromexport, in partnership with its consortium associates Novostal M and Proforce Manufacturing Limited, will undertake the rehabilitation efforts. During their visit, the Nigerian delegation also inspected Novostal M’s facilities in Balakovo, Russia.
Audu praised the agreement as a significant advancement toward building a robust industrial foundation for Nigeria’s economy, asserting that the initiative has the potential to generate over 500,000 direct and indirect employment opportunities.
The Russian partners expressed their dedication to the project, with Novostal M President Demchenko Ivan Ivanovich confirming that a comprehensive proposal will be provided following an audit of the facility.
The full execution of the MoU is anticipated to greatly enhance Nigeria’s economic development, in line with President Bola Tinubu’s objective to elevate the economy to over $1 trillion by 2030.
