About 500,000 direct and indirect jobs are coming for Nigerians following an agreement by a Russian firm to assist in the rehabilitation of a major moribund steel facility in the country.
Nigeria has signed a Memorandum of Understanding (MoU) with Russia to rehabilitate, which will lead to early completion of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) in Kogi State, North-central Nigeria.
The Russian firm under the deal will also lead operations of the facility.
The MoU was signed by the Nigerian Minister of Steel Development, Prince Shuaibu Abubakar Audu with a Russian consortium, the original builders of Ajaokuta Steel Plant, Messrs, Tyazhpromexport, TPE, in Moscow, the Russian capital.
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 $1 trillion by 2030.
According to a statement signed by the Head, Press & Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya, stated that the Minister was on a work visit from 14th – 21st September, 2024, led a Nigerian delegation to Moscow to sign the MoU with the Russian firm and members of their consortium, namely; Novostal M and Proforce Manufacturing Limited.
Prince Shuaibu, who is driving Nigeria’s President Bola Tinubu’s Renew Hope Agenda for the revitalisation, completion, and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO), referred to the MoU as a bold step towards creating a sustainable base for the industrialisation of the Nigerian economy.
He noted that “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.”
He added that the 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 Nigerian delegation, led by the Minister, 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, where they received different raw materials for their operations.
The Permanent Secretary, Ministry of Steel Development, Dr. Chris Osa Isokpunwu, in his remarks, affirmed the commitment of the Nigerian Government to revamp the Ajaokuta Steel Project and National Iron Ore Mining Company, Itakpe.
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.
