Nigeria has taken a major step towards industrial revival by signing a Memorandum of Understanding (MoU) with a Russian consortium to rehabilitate and operate the Ajaokuta Steel Plant and National Iron Ore Mining Company (NIOMCO) in Kogi State.

The agreement, signed by Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, during a working visit to Moscow, signifies renewed efforts to complete these critical infrastructure projects.

The MoU involves Messrs. Tyazhpromexport (TPE), the original builders of the steel plant, alongside Novostal M and Proforce Manufacturing Limited.

The partnership aims to restore entire operations at the steel plant and the iron ore mining company, which is critical to Nigeria’s industrial ambitions. During the visit, the Nigerian delegation, led by Audu, inspected the Novostal M facility in Balakovo, Saratov, which boasts an Electric Arc Furnace capacity of 1.2 million metric tonnes annually.

Prince Audu underscored the agreement’s strategic importance, stating, “The revival of the steel sector will reduce Nigeria’s dependence on steel imports, which cost the country over $4 billion annually. This will not only save foreign exchange but also boost industrialisation.”

The Nigerian government sees this move as a vital step in advancing its economic diversification and growth agenda.

The project is expected to create over 500,000 direct and indirect jobs, contributing significantly to President Tinubu’s vision of expanding Nigeria’s economy to over $1 trillion by 2030.

The consortium led by TPE has expressed its full commitment to fulfilling the MoU. Mr. Egorov Sergei Anatolevich, General Director of TPE, stated, “We are fully committed to seeing this project through, as it plays a crucial role in Nigeria’s economic development.”

The President of Novostal M, Demchenko Ivan Ivanovich, also assured the delegation that they were ready to submit a detailed proposal after conducting a comprehensive audit of the plant.

The visit also included high-level discussions with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev, who affirmed Russia’s support for the project.