Nigeria Signs Agreement with Russian Consortium to Revive Ajaokuta Steel and National Iron Ore Mining Company
The Federal Government of Nigeria has entered into a significant agreement with a Russian consortium for the rehabilitation, completion, and operation of both the Ajaokuta Steel Company Limited (ASP) and the National Iron Ore Mining Company Limited (NIOMCO). This development comes after years of efforts to revitalize Nigeria’s steel industry, which has been dormant for decades.
In a statement released by Salamatu F. Jibaniya, Head of the Press & Public Relations Department at the Ministry of Steel Development, the agreement was formalized during a working visit by Nigeria’s Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, to Moscow, Russia, from September 14–21, 2024.
The Memorandum of Understanding (MoU) was signed with the original builders of the Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), and a consortium including Novostal M and Proforce Manufacturing Limited. The agreement paves the way for the full rehabilitation and operationalization of both the steel plant and the mining company located in Kogi State, Nigeria.
The Russian consortium’s visit to Nigeria in August 2024 for preliminary inspections of the Ajaokuta Steel Plant and Itakpe Iron Ore Mining site laid the groundwork for the current agreement.
Prince Shuaibu emphasized the importance of the deal, stating that reviving Nigeria’s steel sector is essential for the country’s industrialization efforts. He noted that the completion of these projects would significantly reduce Nigeria’s reliance on imported steel, which costs the country over $4 billion annually. The revival of the steel sector is also expected to conserve valuable foreign exchange and create a sustainable industrial base for the economy.
The Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev, who assured them of the consortium’s readiness to fulfill the terms of the agreement. The delegation also inspected the facilities of Novostal M in Balakovo, Russia, where a steel plant with a capacity of 1.2 million metric tonnes of steel products per year is fully operational, employing over 3,900 workers.
This agreement marks a crucial step in Nigeria’s efforts to boost domestic steel production, which could have far-reaching economic impacts across various sectors, from construction to manufacturing.
The Ministry of Steel Development, under Prince Shuaibu’s leadership, is driving President Bola Ahmed Tinubu’s mandate to industrialize the country and create jobs through the revival of Nigeria’s moribund steel sector. Further updates on the progress of the Ajaokuta and Itakpe projects are expected in the coming months.
