Русский
A Russian consortium has signed a Memorandum of Understanding (MoU) with the Nigerian government to restart operations at Nigeria’s Ajaokuta Steel Plant. The plant, together with Nigeria’s National Iron Ore Mining Company (NIOMCO), have been dormant for 42 years. The agreement was formalized during a recent visit to Moscow by Prince Shuaibu Abubakar Audu, Nigeria’s Minister of Steel Development, and marks a key step in Nigeria’s drive to strengthen its steel industry.
The Russian consortium includes Tyazhpromexport (TPE), Novostal M, and Proforce Manufacturing Limited, who will lead the rehabilitation, completion, and operation of the Ajaokuta facilities. The deal as completed following an inspection by the consortium of the plant, and its associated Itakpe iron ore mining site last month.
Prince Audu emphasized the deal aligns with Nigerian President Bola Tinubu’s vision of industrializing Nigeria and reducing the country’s dependence on imported steel, which costs the nation around US$4 billion annually.
The revitalization effort is expected to create over 500,000 direct and indirect jobs, while boosting Nigeria’s manufacturing base. This is seen as critical to achieving President Tinubu’s target of transforming Nigeria into a US$1 trillion economy by 2030.
During their working visit to Russia, the Nigerian delegation held talks with key officials, including Alexey V. Gruzdev, the Russian Federation’s Deputy Minister of Industry and Trade. They also toured Novostal M’s state-of-the-art steel production facility in the Saratov region, which has a capacity of 1.2 million metric tonnes of steel annually.
The Ajaokuta project is estimated to cost between US$2 billion and US$5 billion. If successful, this project will position Nigeria as a key player in Africa’s steel industry, with far-reaching economic benefits.
Further Reading
Russia – Africa 2024 Trade & Development – The Latest Updates
