Editor
By Fatima Saka
The Federal Government of Nigeria has entered into a bilateral agreement with the Russian Consortium Company for the Rehabilitation, completion, and operation of Ajaokuta Steel Company Limited and National Iron Ore Mining Company Limited.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, who led the Nigerian delegation to Moscow, Russia since September 14, 2024, signed the Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant Messrs, Tyazhpromexport (TPE), and members of their consortium namely; Novostal M and Proforce Manufacturing Limited for the Rehabilitation, Completion, and Operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) in Kogi State, Nigeria.
The invitation was extended by the Russian Federation following a visit by a consortium led by Messrs. TPE to the Steel Plant in Ajaokuta and the Iron Ore Mining site at Itakpe in August 2024 for preliminary inspections.
Prince Shuaibu, who is spearheading the revitalization, completion, and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) on behalf of the President, emphasized that this is a significant step towards establishing a sustainable foundation for the industrialization of the Nigerian economy.
He highlighted that the revival of the Steel sector will not only diminish the importation of Steel products into Nigeria, which currently stands at over $4 billion annually, but will also help conserve valuable foreign exchange.
During the visit, the Nigerian delegation engaged with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev, and the consortium led by TPE reassured the Nigerian Delegation of their preparedness to meet the expectations outlined in the MoU with the Nigerian Government.
The Nigerian delegation, headed by the Minister of Steel, also conducted inspections of the facilities of Messrs. Novostal M situated in Balakovo in the Saratov region.
The Plant, which was fully operational during the visit, boasts an Electric Arc Furnace capacity of 1.2 million metric tonnes of Steel products per annum with a workforce of 3,900 employees.
The team also visited the private port facility of the Company where various raw materials for their operations were received.
In his remarks, the Permanent Secretary of the Ministry of Steel Development, Dr. Chris Osa Isokpunwu, affirmed the Nigerian Government’s dedication to revitalizing the Ajaokuta Steel Project and National Iron Ore Mining Company, Itakpe.
The President of Metallurgical Holding, Novostal – Mr. Demchenko Ivan Ivanovich, assured the delegation of their willingness to submit a detailed proposal for the project following a comprehensive audit of the Plant.
The General Director of Messrs. TPE, Mr. Egorov Sergei Anatolevich, and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin, reassured the Nigerian delegation of their commitment to the project due to its crucial role in the overall economic development of Nigeria.
They also requested the provision of an enabling environment by the Nigerian Government.
All parties expressed optimism that the full implementation of the MoU will facilitate the revival of both Ajaokuta Steel Company Limited (ASCL) and NIOMCO, potentially creating over 500,000 direct and indirect jobs for Nigerians and significantly boosting the economy by billions of dollars. This would greatly contribute to President Tinubu’s aspiration to grow the economy to over $1 trillion by 2030.
The Honourable Minister of Steel Development was accompanied on this significant trip by the Permanent Secretary of the Ministry, Dr. Chris Osa Isokpunwu, the Sole Administrator of Ajaokuta Steel Company Limited, Engr. Sumaila Abdul-Akaba, the Acting Sole Administrator of National Iron Ore Mining Company, Itakpe, Engr. Loto Festus Isinmidun, the Acting Director of Steel & Non-Ferrous Metals department of the Ministry, Mr. Umar Adamu Tsoho, and his Technical Adviser, Mr. Anekwe Patrick Chinwuba.
