The Nigerian government has signed a Memorandum of Understanding (MoU) with a Russian consortium to rehabilitate, complete, and operate the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
A statement released by the Head of Press & Public Relations at the Ministry of Steel Development, Salamatu F. Jibaniya, confirmed that the MoU was signed by Nigeria’s Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu. The minister led a delegation on a working visit to Moscow from September 14 to 21, 2024.
The Russian consortium includes Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant, along with Novostal M and Proforce Manufacturing Limited.
This partnership comes after the consortium’s preliminary visit to the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024. Following a thorough inspection, the Russian Federation agreed to partner with Nigeria, resulting in the signing of the MoU.
Prince Shuaibu highlighted that the agreement aligns with the president’s mandate to revive and complete these critical steel projects for Nigeria’s economic transformation.
“The revitalisation of the steel sector will help reduce the $4 billion annual steel importation costs and conserve much-needed foreign exchange for Nigeria,” he said.
During the Moscow visit, the Nigerian delegation also met with Mr. Alexey V. Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation. The Russian consortium, led by TPE, affirmed its commitment to the MoU’s objectives. The delegation also toured Novostal M’s steel production facility in Balakovo, which produces 1.2 million metric tonnes of steel annually and employs 3,900 workers.
Dr. Chris Osa Isokpunwu, Permanent Secretary of the Ministry of Steel Development, reiterated the Nigerian government’s commitment to completing the Ajaokuta and NIOMCO projects.
Supporting the move, Mr. Demchenko Ivan Ivanovich, President of Novostal M, assured that a comprehensive proposal would be submitted after a detailed audit of the plants.
Consortium members, including Mr. Egorov Sergei Anatolevich of TPE and Mr. Adetokunbo Ogundeyin, Group Managing Director of Proforce Manufacturing Limited, expressed optimism that the partnership would significantly contribute to Nigeria’s economic growth.