The Federal Government of Nigeria, alongside the original builders of the Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), has officially signed a Memorandum of Understanding (MoU) aimed at the rehabilitation, completion, and operation of both the Ajaokuta Steel Plant and the National Iron Ore Mining Company in Kogi State.

According to a statement released by Salamatu Jibaniya, Head of the Press & Public Relations Department at the Ministry of Steel Development, the agreement was facilitated by Nigeria’s Minister of Steel Development, Prince Shuaibu Audu. Leading a delegation to Moscow from September 14th to 21st, 2024, the minister pushed forward the revitalization efforts in line with President Tinubu’s mandate for industrialization. The MoU was initiated after a consortium led by TPE visited both Ajaokuta Steel Plant and the Iron Ore Mining site in Itakpe in August for initial inspections.

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Prince Shuaibu Audu emphasized the importance of this agreement, highlighting its potential to serve as a foundation for Nigeria’s industrial growth. “The revival of the steel sector will drastically reduce the nation’s steel importation, which currently costs over $4 billion annually, saving valuable foreign exchange,” he stated.

During the Moscow visit, the Nigerian delegation also met with Alexey V. Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation. The TPE-led consortium assured the Nigerian government of their readiness to fulfill the MoU’s commitments. The Nigerian delegation also toured Messrs. Novostal M, a steel facility in Balakovo, Russia, which operates with a capacity of 1.2 million metric tonnes of steel annually and employs 3,900 workers. The team inspected the company’s private port, where raw materials for steel production are received.