Nigeria signs MOU with Russia to Revive Ajaokuta Steel Plant

Nigeria Secures Strategic Partnership with Russian Consortium to Revive Ajaokuta Steel Plant and Boost Industrial Growth

Nigeria has made a significant move toward reviving its industrial sector by entering into a Memorandum of Understanding (MoU) with a Russian consortium for the rehabilitation and operation of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.

The MoU was signed during a working visit to Moscow by Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu. PulseNets reported that this agreement marks a fresh commitment to finalizing these key infrastructure projects.

According to the details, Messrs. Tyazhpromexport (TPE), the original builders of the steel plant, are teaming up with Novostal M and Proforce Manufacturing Limited. The partnership’s objective is to fully restore operations at the steel plant and iron ore mining company, a critical component of Nigeria’s industrial ambitions.

During the visit, Prince Audu, who led the Nigerian delegation, inspected the Novostal M facility in Balakovo, Saratov, which features an Electric Arc Furnace with an impressive capacity of 1.2 million metric tonnes per year.

PulseNets learnt that Prince Audu emphasized the strategic value of the agreement, stating, “The revival of the steel sector will reduce Nigeria’s dependence on steel imports, which cost the country over $4 billion annually. This will not only save foreign exchange but also boost industrialisation.”

This development is a major milestone in Nigeria’s drive to diversify its economy and fuel growth. The project is expected to generate over 500,000 direct and indirect jobs, aligning with President Tinubu’s goal of expanding Nigeria’s economy to over $1 trillion by 2030.

PulseNets spoke to Egorov Sergei Anatolevich, General Director of TPE, who expressed the consortium’s full dedication to the MoU, stating, “We are fully committed to seeing this project through, as it plays a crucial role in Nigeria’s economic development.”

Also Read: FEC: FG to rehabilitate Ajaokuta steel company with N853mn ahead of concession process

Demchenko Ivan Ivanovich, President of Novostal M, assured the delegation that a detailed proposal would be submitted following a comprehensive audit of the plant, according to PulseNets.

High-level discussions also took place with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev, who told PulseNets that Russia is fully supportive of this ambitious project.