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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