The Federal Government of Nigeria, through the Minister of Steel Development, Prince Shuaibu Abubakar Audu, has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant, Tyazhpromexport (TPE), and its consortium partners, Novostal M and Proforce Manufacturing Limited. The agreement focuses on the rehabilitation, completion, and operation of the Ajaokuta Steel Plant (ASP) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.

This follows an invitation from the Russian Federation, after a consortium led by TPE visited the Ajaokuta Steel Plant and the Iron Ore Mining site at Itakpe in August 2024 for preliminary inspections.

According to a statement by Salamatu F. Jibaniya, Head of Press & Public Relations Department, Prince Shuaibu emphasized that the project aligns with President Bola Tinubu’s mandate to revitalize Nigeria’s steel sector. He also highlighted that the revival of the Ajaokuta Steel Plant will help reduce Nigeria’s annual $4 billion expenditure on steel imports, conserving valuable foreign exchange.

During their visit to Moscow, the Nigerian delegation met with Alexey V. Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation. The TPE-led consortium expressed confidence in delivering on the terms of the MoU.

The delegation also toured Novostal M’s steel plant in Balakovo, Saratov region, which operates an Electric Arc Furnace with an annual capacity of 1.2 million metric tonnes of steel and employs 3,900 workers. They further inspected the company’s private port facility used for receiving raw materials.