Abuja, Nigeria – In a significant step towards reviving its industrial sector, Nigeria has signed a Memorandum of Understanding (MoU) with a Russian consortium to rehabilitate, complete, and operate the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company Limited.
The agreement was finalized during a visit by the Nigerian Minister of Steel Development, Prince Shuaibu Abubakar Audu, to Moscow, Russia, from September 14th to 21st, 2024. The Russian consortium, led by Tyazhpromexport (TPE),the original builders of the Ajaokuta Steel Plant, expressed its commitment to fulfilling the terms of the MoU.
Minister Audu emphasized the importance of this partnership in driving Nigeria’s industrialization and reducing its dependence on imported steel products. The estimated annual import of steel products into Nigeria exceeds $4 billion, and the revival of the steel sector will help save scarce foreign exchange.
During the visit, the Nigerian delegation met with Russian officials and inspected the facilities of the consortium’s member, Novostal M. The plant, located in Balakovo, Russia, has an annual capacity of 1.2 million metric tonnes of steel products and employs over 3,900 workers.
The MoU marks a significant milestone in Nigeria’s efforts to revitalize its steel industry and create a sustainable base for its economy.
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