The Federal Government of Nigeria has formalized a partnership with the original builders of the Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), and a consortium including Novostal M and Proforce Manufacturing Limited, to rehabilitate, complete, and operate the Ajaokuta Steel Plant (ASP) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
This significant step follows the Russian Federation’s acceptance to support the rehabilitation, after a consortium led by TPE visited the Ajaokuta Steel Plant and the Iron Ore Mining site in Itakpe in August 2024 for preliminary inspections. These inspections paved the way for the Memorandum of Understanding (MoU), which aims to revitalize the steel sector in Nigeria.
Shuaibu Audu, Nigeria’s Minister of Steel Development, described the MoU as a crucial move towards industrializing the nation’s economy. He emphasized that reviving the steel sector will curb Nigeria’s reliance on imported steel products, which currently costs over $4 billion annually, thereby preserving valuable foreign exchange.
During a working visit to Moscow, Audu and the Nigerian delegation met with Russia’s Deputy Minister of Industry and Trade, Mr. Alexey Gruzdev, along with the TPE-led consortium. Gruzdev reaffirmed the consortium’s readiness to fulfill the terms of the agreement, expressing confidence in delivering the expected outcomes.
Demchenko Ivan Ivanovich, President of Novostal M, committed to providing a detailed proposal after conducting a comprehensive audit of the Ajaokuta Steel Plant. Similarly, the General Director of Messrs TPE, Mr. Egorov Anatolevich, and Proforce Manufacturing Limited’s Group Managing Director, Mr. Adetokunbo Ogundeyin, pledged their dedication to the project’s success.
This development is expected to set the stage for the long-awaited completion and operationalization of the Ajaokuta Steel Plant, positioning Nigeria on a path toward industrial self-sufficiency.
