The Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with the original builders of the Ajaokuta Steel Plant, Tyazhpromexport, to rehabilitate, complete, and operate the long-dormant plant. The agreement also includes the revival of the National Iron Ore Mining Company (NIOMCO).
Shuaibu Audu, Nigeria’s Minister of Steel Development, signed the deal during a visit to Moscow, Russia, which took place from September 14 to 21, 2024. This agreement marks a significant step in revitalizing the Ajaokuta Integrated Steel Complex, a project originally conceived in 1979 but which has been plagued by decades of inactivity due to corruption and legal challenges.
The Ajaokuta steel plant is envisioned as a cornerstone of Nigeria’s industrial ambitions, aiming to stimulate both upstream and downstream economic activities that are vital for the country’s economic diversification. Minister Audu reaffirmed his commitment to ensuring that the plant will soon begin production, eliminating the need for Nigeria to import steel.
Preliminary inspections of the plant, carried out in August 2024 by Tyazhpromexport experts, paved the way for this MoU. Other partners involved include Novostal M and Proforce Manufacturing Limited, who are part of Tyazhpromexport’s consortium.
The Nigerian delegation, led by Minister Audu, also visited the facilities of Novostal M in Russia’s Saratov region. Speaking on the significance of the deal, Audu described it as a major step toward the industrialization of Nigeria’s economy, noting that steel production would reduce Nigeria’s steel imports, which currently exceed $4 billion annually.
The Russian consortium, represented by Metallurgical Holding President Ivan Ivanovich Demchenko and Tyazhpromexport General Director Egorov Anatolevich, assured their Nigerian counterparts of their commitment to fulfilling the terms of the MoU. They highlighted that a successful revival of the plant could create over 500,000 jobs and significantly boost Nigeria’s economy, aligning with President Bola Tinubu’s vision to grow the nation’s economy to over $1 trillion by 2030.
