The Ajaokuta Steel Plant that has been dormant for over 42 years, may soon come on stream following the Memorandum of Understanding (MoU) signed by Federal Government with a Russian consortium to revive the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company (NIOMCO).
The agreement, formalized during a recent visit by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, to Moscow, marks a key step in Nigeria’s drive to strengthen its steel industry.
The consortium, consisting of Messrs Tyazhpromexport (TPE), Novostal M, and Proforce Manufacturing Limited, will lead the rehabilitation, completion, and operation of the steel and iron ore mining facilities located in Kogi State.
This agreement follows an August 2024 inspection by the Russian-led consortium of the Ajaokuta Steel Plant and the Itakpe iron ore mining site. Speaking on the project, Minister Audu emphasized its alignment with President Bola Tinubu’s vision of industrializing Nigeria and reducing the country’s dependence on imported steel, which costs the nation around $4 billion annually.
The revitalization effort is expected to create over 500,000 direct and indirect jobs, while boosting Nigeria’s manufacturing base. This is seen as critical to achieving President Tinubu’s target of transforming Nigeria into a $1 trillion economy by 2030.
During their working visit to Russia, the Nigerian delegation held talks with key officials, including Alexey V. Gruzdev, the Russian Federation’s Deputy Minister of Industry and Trade. They also toured Novostal M’s state-of-the-art steel production facility in the Saratov region, which has a capacity of 1.2 million metric tonnes of steel annually. The Russian partners, including TPE’s General Director Egorov Sergei Anatolevich, reiterated their commitment to the success of the project.
The Ajaokuta Steel Plant, dormant for over 42 years, has been a focal point of Nigeria’s industrial development plans. Earlier efforts to sign an MoU in 2020 were derailed by the COVID-19 pandemic. However, the renewed collaboration with Russian firms is expected to breathe new life into the facility. The Nigerian government has allocated N4.45 billion to Ajaokuta in the 2024 budget and is seeking an additional N35 billion for its full revival, which is estimated to cost between $2 billion and $5 billion.
If successful, this project will position Nigeria as a key player in Africa’s steel industry, with far-reaching economic benefits.