Business News
Nigerian govt, Russian consortium sign deal to revive Ajaokuta Steel Plant
The agreement was signed in Moscow by Nigeria’s Minister of Steel Development, Shuaibu Audu, as part of a delegation visit to Russia from September 14 to 21, 2024, according to a statement released by ministry spokesperson Salamotu Jibaniya.
The Ajaokuta Steel Complex, which has been dormant since its inception in 1979 due to corruption and legal challenges, was initially intended to drive Nigeria’s industrial transformation.
Despite decades of inactivity, it remains a critical component for the country’s plans to diversify its economy through industrial development.
Audu emphasized that the revival of Ajaokuta Steel is essential to ending Nigeria’s dependency on steel imports, which costs the nation over $4 billion annually. The latest agreement followed an August visit by Tyazhpromexport’s technical experts to inspect the steel plant and iron ore mining site in Itakpe.
As part of the MoU, Tyazhpromexport, in collaboration with its consortium partners Novostal M and Proforce Manufacturing Limited, will carry out the rehabilitation work. During the visit, the Nigerian delegation also toured Novostal M’s facilities in Balakovo, Russia.
Audu hailed the agreement as a crucial step toward establishing a strong industrial base for Nigeria’s economy, stating that the project has the potential to create over 500,000 direct and indirect jobs.
The Russian partners pledged their commitment to the project, with Novostal M President Demchenko Ivan Ivanovich confirming that a detailed proposal will be submitted following an audit of the plant.
The full implementation of the MoU is expected to significantly bolster Nigeria’s economic growth, aligning with President Bola Tinubu’s vision to grow the economy to over $1 trillion by 2030.
The steel minister was accompanied by senior officials, including the Permanent Secretary of the Steel Ministry, Chris Isokpunwu, and the Sole Administrator of Ajaokuta Steel Company Limited, Sumaila Abdul-Akaba.
