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.

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It could be recalled that in May this year the Federal Government said it was in talks with investors from Russia, China, and some Arab countries on the possibility of revamping the Ajaokuta Steel company. The government said it was considering an investment of about $2 billion into the resuscitation of the plant constructed in 1979.

Minister of Steel Development, Shuaibu Audu, made the disclosure at the Ministerial Sectoral Briefings to mark the first anniversary of the President Bola Tinubu administration.

That was as the Federal Government launched the Nigerian National Information Portal, as the official digital gateway to comprehensive information on Nigeria.

Taking his turn at the ministerial sectoral briefings, Audu said the Russian builders had shown substantial willingness and desire to complete the 110 megawatts power plant and bring in the funding and structure that will be the best for Nigeria.

He said, “Although we are talking to the Russians, we have other parties that are also showing interest, including the Chinese, the Arab companies. The consortium the Russians are bringing also include the Nigerian investors. We are factoring local capacity into the conversation.”

Audu added that the ministry had obtained presidential approval to raise private capital to kick-start the live section mill of the Steel Plant One that was 98 percent complete, and was at the final stages of raising $35 million via private capital institutions.