Ajaokuta: FG, Russian Consortium Sign MoU to Rehabilitate, Operate Steel Plant

Kasim Sumaina in Abuja

The federal government has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), and members of their consortium namely: Novostal M and Proforce Manufacturing Limited for the rehabilitation, completion, and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) in Kogi State.

The rehabilitation deal was accepted by the Russian Federation when a consortium led by Messrs TPE visited the Steel Plant in Ajaokuta and the Iron Ore Mining site at Itakpe in August 2024 for preliminary inspections, leading to the invitation for the signing of the MoU.
The Minister of Steel Development, Shuaibu Audu, described the MoU as a bold step towards creating a sustainable base for the industrialisation of the Nigerian economy.

He noted that the revival of the steel sector would also reduce the importation of steel products into Nigeria, which are estimated to be worth over $4 billion annually.

Audu, who led a Nigerian delegation to Moscow, Russia on a working visit, met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey Gruzdev, and the consortium led by TPE assured the Nigerian delegation of the readiness of the consortium to meet the terms of the MoU with the Nigerian Government.

The President of Metallurgical Holding, Novostal – M, Demchenko Ivan Ivanovich, assured the delegation of their readiness to submit a detailed proposal for the project after the comprehensive audit of the Plant.