The Nigeria government has signed a Memorandum of Understanding (MoU) with a Russian consortium, comprising Tyazhpromexport, Novostal M, and Proforce Manufacturing Limited, to revive the Ajaokuta Steel Company Limited and National Iron Ore Mining Company (NIOMCO).
Reports revealed that the MoU, facilitated by Prince Shuaibu Abubakar Audu, Minister of Steel Development, is poised to bolster Nigeria’s steel sector and reduce reliance on imported steel, which currently costs the nation an estimated $4 billion annually.
The revitalization effort is expected to create a substantial 500,000 jobs, both direct and indirect, and contribute greatly to the economy, aligning with President Bola Tinubu’s goal of achieving a $1 trillion economy by 2030.
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Notably, the MoU signing follows a visit by the Nigerian delegation to Moscow, where they met with key stakeholders and toured Novostal M’s state-of-the-art facility, demonstrating the consortium’s readiness to deliver on the agreement.
A statement regarding the MoU read:
“The Federal Government of Nigeria through the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu who led a Nigerian delegation to Moscow, Russia from 14th – 21st September, 2024, on a working visit, 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, Nigeria.”
