The federal government has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant Messrs, Tyazhpromexport (TPE) and members of their consortium namely; Novostal M and Proforce Manufacturing Limited for the rehabilitation, completion and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) in Kogi State, Nigeria.
The rehabilitation 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.
The Minister of Steel Development, Shuaibu Audu described the MoU as a bold step towards creating a sustainable base for the industrialisation of the Nigeria economy.
He noted that the revival of the Steel sector would also reduce importation of Steel products into Nigeria which is estimated at over $4 billion annually and will help save scarce foreign exchange.
Audu, who led a Nigerian delegation to Moscow, Russia on a working visit, met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey 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 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 Anatolevich and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin assured the Nigerian delegation of their commitment to the project.