Nigeria, Russia Seal Historic Deal on Ajaokuta Steel Plant Revival
In a landmark move, Nigeria has signed a Memorandum of Understanding (MoU) with Russia to revive the dormant Ajaokuta Steel Plant. The deal, facilitated by the Federal Government of Nigeria and Russian steel giants, promises to transform Nigeria’s industrial landscape and boost economic growth.
Background
The Ajaokuta Steel Plant, conceived in the 1970s, has been plagued by delays, mismanagement, and funding issues. Despite its potential to drive Nigeria’s industrialization, the plant has remained inactive, hindering the country’s economic progress.
Key Terms of the Agreement
The MoU, signed between Nigeria’s Ministry of Steel Development and Russia’s Tyazhpromexport (TPE), Novostal M, and Proforce Manufacturing Limited, outlines:
- Rehabilitation and completion of Ajaokuta Steel Plant.
- Operation and management of National Iron Ore Mining Company (NIOMCO) in Kogi State.
- Technical partnership and expertise sharing.
- Creation of over 500,000 direct and indirect jobs.
- Reduction of steel imports, saving Nigeria over $4 billion annually.
Benefits and Implications
This historic deal is expected to:
- Revitalize Nigeria’s steel industry.
- Boost economic growth through increased production and job creation.
- Reduce dependence on imported steel products.
- Enhance Nigeria’s global competitiveness.
- Align with President Tinubu’s vision of a $1 trillion economy by 2030.
Reactions
Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, hailed the agreement as “a significant milestone in Nigeria’s industrialization journey.”
Russian Deputy Minister of Industry and Trade, Mr. Alexey V. Gruzdev, emphasized Russia’s commitment to supporting Nigeria’s economic development.
Next Steps
The Nigerian government and Russian partners will:
- Conduct feasibility studies and technical assessments.
- Establish a joint project implementation committee.
- Finalize funding arrangements.
Timeline
The project is expected to commence within the next 12-18 months, with completion targeted for 2027.
