From Lateef Taiwo
The Federal Government of Nigeria
has signed a Memorandum of Understanding, MoU, with the original builders of Ajaokuta Steel Plant,
Messrs, Tyazhpromexport, TPE, of Russia and members of their consortium, namely Novostal M and Proforce Manufacturing Limited for rehabilitation, update, and completion of the plant and and National Iron Ore Mining Company, NIOMCO, in Kogi State, Nigeria.
The deal was sealed with the Eurasian country side by the Minister of Steel Development, Prince Shuaibu Abubakar Audu in Moscow, the Russian capital who led a Nigerian delegation there on a working visit from 14th – 21st September, 2024.
Nigeria’s call for this second round of partnership, according to a statement signed and issued Friday by Salamatu Jibaniya, the head, Press and Public Relations unit of the ministry, was accepted by the Russian Federation when the consortium led by Messrs TPE visited the Steel Plant in Ajaokuta and the Iron Ore Mining site at Itakpe in August, 2024 for preliminary inspection leading to the invitation for the signing of the MoU.
Ajaokuta Steel Company Limited, ASCL, popularly known as Ajaokuta Steel Mill, started in 1979 in Ajaokuta in what is now Kogi State now, built on a sprawling 24,000 hectares, 59,000 acres, site is the largest steel mill in Nigeria.
Yet, over 40 years after, the gigantic project envisage to be the bedrock of the country’s industrialisation however has remained uncompleted to date due to neglect by successive administrations.
Prince Audu noted that the move was a step towards creating a sustainable base for the industrialisation of the Nigerian economy, adding that the revival of the steel sector would reduce importation of Steel products into Nigeria which is estimated at over $4 billion, thereby saving save scarce foreign exchange.
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 assured the Nigerian delegation of the readiness of the consortium to meet the expectations of the MoU with the Nigerian government.
According to the statement, the Nigerian delegation also inspected the facilities of Messrs. Novostal M located in Balakovo in the Saratov region, as well as the private port facility of the Company where they received different raw materials for their operations.
The Plant which was in full operation during the visit has an Electric Arc Furnace capacity of 1.2Million metric tonnes of Steel products per annum with a staff strength of 3,900 workers.
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 an enabling environment by the Nigerian government.
The parties expressed their optimism that the full implementation of the MoU will facilitate the revival of both Ajaokuta Steel Company Limited, 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 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, Engr Sumaila Abdul-Akaba, the Acting Sole Administrator of National Iron Ore Mining Company, Itakpe, Engr Loto Festus Isinmidun, the Acting Director of Steel & Non-Ferrous Metals department of the Ministry, Mr Umar Adamu Tsoho, and his Technical Adviser, Mr Anekwe Patrick Chinwuba.
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