To strengthen Nigeria’s Steel industry, the Federal Government has entered into a Memorandum of Understanding (MoU) with a Russian consortium to restore, complete, and manage the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company Limited (NIOMCO) located in Kogi State. The agreement, finalised during a business visit by a Nigerian delegation to Moscow, signifies an ambitious move towards establishing a lasting industrial foundation for the country. Between September 14 and 21, 2024, a Nigerian delegation led by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, travelled to Russia.
This journey signifies an important step in the country’s lasting commitment to revitalise the sector, an essential industrial resource. This ambitious initiative features a Russian consortium comprising Tyazhpromexport (TPE), the initial developers of the Ajaokuta Steel Plant, Novostal M, and Proforce Manufacturing Limited. Following several thorough evaluations at the Ajaokuta Steel Plant and the National Iron Ore Mining facility in Itakpe, which the consortium carried out in August 2024, this collaboration led to the signing of the Memorandum of Understanding.
Reviving the industry will reduce the nation’s dependence on foreign metal.
Prince Shuaibu emphasised that this arrangement is crucial in realising President Tinubu’s goal of rejuvenating the nation’s iron industry. Enhancing the sector has been key to reducing the country’s reliance on foreign metal, costing the nation more than $4 billion annually. By rejuvenating this industry, the nation aims to preserve essential foreign currency and establish a more robust industrial foundation to drive economic development. During the delegation’s visit, important conversations occurred with senior officials, including Alexey V. Gruzdev, Russia’s Deputy Minister of Industry and Trade.
The consortium headed by TPE reiterated its dedication to meeting the goals specified in the agreement. This pledge strengthens hopes regarding the potential revival of the two plants following years of inactivity. A significant moment during the visit was the delegation’s inspection of Novostal M’s facilities in the Saratov area of Russia. As part of the consortium, Novostal M runs an iron plant capable of producing 1.2 million metric tonnes yearly. The site has about 3,900 employees and was fully operational when the officials visited. The group also visited the organisation’s exclusive port facility, witnessing the efficient management of essential raw materials needed for iron manufacturing.
Russian official reinforced their readiness to submit the proposal.
Dr. Chris Osa Isokpunwu, the Permanent Secretary at the Ministry of Steel Development, who was part of the delegation, emphasised the region’s dedication to revitalising the two plants to their maximum capability. This viewpoint was reinforced by Demchenko Ivan Ivanovich, the President of Novostal M, who indicated his willingness to present a thorough proposal after conducting an extensive audit of the plants. Meanwhile, Egorov Sergei Anatolevich, the General Director of Messrs TPE, and Adetokunbo Ogundeyin, the Group Managing Director of Proforce Manufacturing Limited, emphasised their dedication to the success of the consortium’s initiative.
They underscored the industry’s essential contribution to national economic advancement and pointed out the necessity for government support to enable a conducive atmosphere for achieving project goals. The revival of two factories represents a significant economic achievement and an opportunity for job creation, with forecasts suggesting that more than 500,000 direct and indirect positions may generated. In addition to generating jobs, this project has the potential to boost the national economy, aligning with President Tinubu’s bold vision of elevating the Economy to beyond $1 trillion by the year 2030.
Related Article: Ajaokuta Steel Complex Development in Nigeria
Many high-ranking officials, such as Dr. Chris Osa Isokpunwu, the Permanent Secretary of the Ministry of Steel Development; Engineer Sumaila Abdul-Akaba, the Sole Administrator of Ajaokuta Iron Company, and Engineer Loto Festus Isinmidun, the Acting Sole Administrator of NIOMCO, joined Prince Shuaibu on this significant visit. Their participation signified the federal government’s dedication to completing this initiative. Therefore, this new agreement makes the path to a long-anticipated industrial revolution seem closer than ever. The MoU promises to transform the sector, strengthen its industrial backbone, and contribute to national economic growth.