Nigeria and Russia have signed a Memorandum of Understanding (MoU) to rehabilitate, complete, and operate the Ajaokuta Steel Plant and National Iron Ore Mining Company (NIOMCO) in Kogi State. The signing took place in Moscow, Russia, between Nigeria’s Minister of Steel Development, Prince Shuaibu Abubakar Audu, and Russia’s original builders of Ajaokuta Steel Plant, Messrs Tyazhpromexport (TPE), along with consortium members Novostal M and Proforce Manufacturing Limited.
According to a statement signed by the Head, Press & Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya, and made available to Saturday Vanguard, the Minister was on a working visit from 14th – 21st September, 2024, which was also to sign the MoU with the Russian firm and members of their consortium, namely; Novostal M and Proforce Manufacturing Limited.
The statement also made it known that the call was accepted by the Russian Federation when a consortium led by Messrs, TPE visited the Ajaokuta 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 call 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 Memorandum of Understanding.
“Prince Shuaibu who is driving Mr. President’s mandate for the revitalization, completion and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) said this is a bold step towards creating a sustainable base for the industrialization of the Nigeria economy, noting that The revival of the Steel sector will also reduce importation of Steel products into Nigeria which is estimated at over $4billion annually and will help save scarce foreign exchange.
“During the visit, the Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev and the consortium led by TPE assured the Nigerian Delegation of the readiness of the Consortium to meet the expectations of the MoU with the Nigerian Government.”
The Nigerian delegation led by the Nigeria Minister of Steel also inspected the facilities of Messrs. Novostal M located in Balakovo in the Saratov region.
The Plant which was in full operation during the visit has an Electric Arc Furnace capacity of 1.2 Million metric tonnes of Steel products per annum with a staff strength of 3,900 workers.
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The team also inspected the private port facility of the Company where they received different raw materials for their operations.
The Permanent Secretary, Ministry of Steel Development, Dr. Chris Osa Isokpunwu in his remark affirmed the commitment of the Nigerian Government to revamp the Ajaokuta Steel Project and National Iron Ore Mining Company, Itakpe.
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.
The General Director of Messrs. TPE, Mr. Egorov Sergei Anatolevich and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin assured the Nigerian delegation of their commitment to the project because of its critical role in the overall economic development of Nigeria and requested for the provision of an enabling environment by the Nigerian Government.