Nigeria signed MoU with Russian consortium for rehabilitation of Ajaokuta Steel Plant

The Nigeria federal government has signed a Memorandum of Understanding (MoU) with the original builders of the Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), along with consortium partners Novostal M and Proforce Manufacturing Limited. The agreement marks the beginning of efforts to rehabilitate, complete, and operate the Ajaokuta Steel Plant (ASP) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.

The MoU, accepted by the Russian Federation following a visit by the consortium in August 2024, aims to boost Nigeria’s local steel production and reduce the country’s reliance on steel imports, which amount to over $4 billion annually. The preliminary inspections of the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe prompted the formal signing of the agreement.

Shuaibu Audu, Nigeria’s Minister of Steel Development, described the MoU as a bold step towards industrializing Nigeria’s economy. He emphasized that the revival of the steel sector would play a pivotal role in creating a sustainable base for industrial growth and development.

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During a recent working visit to Moscow, Audu and his delegation met with Mr. Alexey Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation. The consortium led by TPE assured Nigeria of their commitment to fulfilling the terms of the agreement.

Demchenko Ivan Ivanovich, President of Metallurgical Holding Novostal-M, confirmed the consortium’s readiness to submit a detailed proposal for the rehabilitation project following a comprehensive audit of the Ajaokuta Steel Plant. This collaboration is seen as a significant milestone in Nigeria’s efforts to revive its steel industry and boost the nation’s economic growth.