The Federal Government and its Russian counterpart have signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant, Messrs, Tyazhpromexport (TPE) and members of their consortium, Novostal M and Proforce Manufacturing Limited for the rehabilitation, completion and operation of the plant and the National Iron Ore Mining Company (NIOMCO).
 
A statement by the Head, Press and Public Relations Department of the Ministry of Steel Development, Salamotu F. Jibaniya, made available to journalists in Lokoja on Friday, said the Minister of Steel Development, Prince Shuaibu Aubakar Audu led the Nigerian delegation to the meeting geared towards the Operation of Ajaokuta Steel Plant (ASP) and NIOMCO in Kogi State.
 
He noted that the process leading to this milestone achievement under the Renewed Hope Agenda of President Bola Ahmed Tinubu started in July 2023 when the Federal Government, represented by Vice President Kashim Shettima, on the sidelines of the Russia/Africa Summit at Saint Petersburg, called on the Russian Federation to redeem the steel project which he said had been comatose for over four and a half decades.
 
“This call has now been accepted by the Russian Federation through a consortium led by Messrs TPE following the visit of their experts to 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,” the statement added.
 
Jibaniya said the minister was accompanied on the trip by the Permanent Secretary of the Ministry, Dr. Chris Osa Isokpunwu; the Sole Administrator of Ajaokuta Steel Company Limited, Sumaila Abdul-Akaba; the Acting Sole Administrator of National Iron Ore Mining Company, Itakpe, Loto Festus Isinmidun; the Acting Director of Steel and Non-Ferrous Metals Department of the Ministry, Mr. Umar Adamu Tsoho and his Technical Adviser, Mr. Anekwe Patrick Chinwuba. He quoted the minister as saying that “this is a bold step towards creating a sustainable base for the industrialisation of the Nigerian economy.”
  
The statement added: “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 who assured the Nigerian Delegation of the readiness of the Consortium to meet the expectations of the MoU with the Nigerian Government.”

“The Permanent Secretary, 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 Nigerian delegation led by the Honourable Minister of Steel, Prince Shuaibu Abubakar Audu, 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. 
 
“The team also inspected the private port facility of the company through which they receive different raw materials for their operations.“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 enabling environment by the Nigerian Government.”
 
The statement noted that the parties expressed optimism that the full implementation of the MoU would facilitate the revival of both ASCL and NIOMCO and could create over 500,000 direct and indirect jobs for Nigerians and increase the size of the economy by billions of dollars; thus contributing immensely to President Tinubu’s desire to grow the economy to over $1trillion by 2030. 
 
“The revival of the steel sector will also reduce importation of steel products into Nigeria which is estimated at over $4 billion annually and will help save scarce foreign exchange,” it added.