The Federal Government of Nigeria has entered into a Memorandum of Understanding (MoU) with Tyazhpromexport, the company responsible for the construction of the Ajaokuta Steel Plant, to oversee the rehabilitation, completion, and eventual operation of the plant, as well as the National Iron Ore Mining Company (NIOMCO).
During the event, Chris Isokpunwu, Permanent Secretary of the Ministry of Steel Development, emphasized the government’s dedication to revitalizing both the Ajaokuta Steel Plant and NIOMCO.
Representatives of the Russian consortium also reiterated their commitment to fulfilling the terms outlined in the agreement with the Nigerian government. The MoU was signed by Shuaibu Audu, Minister of Steel Development, who represented the Federal Government in Moscow, Russia. This was confirmed in a statement issued on Friday by Salamotu Jibaniya, the ministry’s spokesperson.
Jibaniya further noted that the signing took place during a visit by a Nigerian delegation to Moscow from September 14 to 21, 2024, led by Minister Audu.
The Ajaokuta Integrated Steel Complex, originally conceptualized in 1979, was designed to include a metallurgical plant, an engineering facility, and various supporting infrastructure. However, despite decades of development, it has yet to produce any steel, largely due to corruption and legal challenges that have plagued the project.
The complex is intended to serve as a catalyst for significant upstream and downstream industrial activities that will be vital for Nigeria’s economic diversification and industrial development. Since taking office, Minister Audu has promised that production at the steel plant will begin, marking the end of Nigeria’s dependence on imported steel.
In preparation for this, experts from Tyazhpromexport visited the Ajaokuta Steel Plant and the iron ore mining site at Itakpe in August to conduct preliminary inspections, which led to the formal invitation to sign the MoU.
The agreement also involves other consortium members, including Novostal M and Proforce Manufacturing Limited. The Nigerian delegation inspected Novostal M’s facilities in Balakovo, located in Russia’s Saratov region, as part of the visit.
Commenting on the MoU, Audu described it as a significant milestone that will provide a solid foundation for Nigeria’s industrialization efforts, underscoring its importance in creating a sustainable, industrial economy.
