The Federal Government of Nigeria has officially signed a Memorandum of Understanding (MoU) with a Russian consortium, led by Tyazhpromexport (TPE), for the rehabilitation and operation of the Ajaokuta Steel Company and National Iron Ore Mining Company. This historic agreement was finalised during a Nigerian delegation’s working visit to Moscow from September 14-21, 2024. It marks a significant step towards revitalising Nigeria’s steel sector, with a projected impact on the economy and job creation.

Prince Shuaibu Abubakar Audu, Nigeria’s Minister of Steel Development, described the arrangement as crucial for fostering industrialisation in Nigeria and reducing reliance on steel imports. The delegation’s discussions with Russian officials included assurances from TPE and its partners, Novostal M and Proforce Manufacturing Limited, regarding their commitment to the project’s success and their readiness to meet government expectations.

During their visit, the Nigerian team inspected the facilities of Novostal M, including their operational electric arc furnace capable of producing 1.2 million tonnes of steel annually, underscoring the potential for local production and job creation. The MoU aims not only to rejuvenate both steel projects but also to contribute significantly to Nigeria’s economic growth, potentially creating over 500,000 jobs and helping achieve President Tinubu’s ambitious economic targets by 2030.

The Ajaokuta Steel Company and National Iron Ore Mining Company are pivotal assets in Nigeria’s industrial landscape. Historically, Ajaokuta has faced many challenges that hindered its proper operation, primarily the need for significant rehabilitation and completion. The recent MoU with the Russian consortium represents a renewed effort by the Nigerian government to unlock the economic potential of these companies, aiming for self-sufficiency in steel production and a reduction of the $4 billion annual steel import bill.

The signing of the MoU between the Federal Government of Nigeria and the Russian consortium signifies a pivotal moment for the country’s steel industry. It offers a comprehensive plan for revitalisation, promising to generate hundreds of thousands of jobs while simultaneously bolstering the national economy. This strategic partnership is anticipated to lay a sustainable foundation for Nigeria’s industrial growth.

Original Source: fmino.gov.ng

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Nigeria’s Minister of Steel Development, Shuaib Abubakar Audu, announced plans to privatise Ajaokuta Steel Company Limited (ASCL) and its associated Iron Ore Mine in Itakpe during the Ninth Nigeria Mining Week in Abuja. The initiative aims to stimulate operational efficiencies in the sector, which currently incurs over $4 billion annually in steel imports. This move is part of a broader strategy to revitalise Nigeria’s mining sector as a cornerstone for economic diversification. The government is committed to transforming the mining sector, as emphasised by Uche Geoffrey Nnaji, who spoke on behalf of President Bola Tinubu. He praised the efforts of Dr. Dele Alake, the Minister of Solid Minerals, stating, “His dedication has reinvigorated our approach, addressing challenges… shaping a mining sector that can stand as a global model of innovation and sustainable development.” Minister Alake reaffirmed the government’s aim to achieve economic reform through mining, citing a seven-point agenda designed from extensive research. He noted significant progress, including the prosecution of over 300 illegal miners and ongoing reforms intended to enhance the sector’s economic contribution. Garza Jonathan Gbefwi, Chairman of the House Committee on Solid Minerals, called for increased funding in the upcoming 2025 budget, highlighting the sector’s potential economic benefits. Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI, reported that Nigeria produced 95.07 million tonnes of solid minerals in 2023, earning N9.01 billion in royalties, although only contributing 0.75% to GDP.

The Ajaokuta Steel Company Limited has long been viewed as a crucial asset for Nigeria’s industrial ambitions. However, it has struggled to operate effectively due to various challenges, prompting calls for privatisation as a solution. Investments in the steel industry are vital as Nigeria aims to reduce its heavy reliance on steel imports. The government’s focus on revitalising the mining sector is part of a larger economic diversification strategy to bolster growth and reduce import dependency.

The federal government of Nigeria is taking significant steps to privatise Ajaokuta Steel Company and its Iron Ore Mine in Itakpe to enhance operational efficiencies and reduce steel import costs. This initiative aligns with broader efforts to bolster the mining sector as a key component of Nigeria’s economic diversification. Not only is this expected to reshape the industry, but it also aims to increase the sector’s contribution to the nation’s GDP.

Original Source: nairametrics.com

The post Nigeria Plans to Privatise Ajaokuta Steel Company to Boost Mining Sector first appeared on Nigerian Mining News.