In a significant move to boost its industrial sector, the Nigerian government has signed a Memorandum of Understanding (MOU) with Tyazhpromexport, the original builders of the Ajaokuta Steel Plant.
The agreement aims to rehabilitate, complete, and operate the long-dormant facility, marking a potential turning point for Nigeria’s steel industry.
The MOU was signed by Minister of Steel Development Shuaibu Audu during a delegation visit to Moscow from September 14 to 21. The Ajaokuta Integrated Steel Complex, which has been inactive for decades due to corruption and legal hurdles, was established in 1979 with the goal of creating a robust metallurgical industry.
Minister Audu emphasized the deal’s importance, stating it represents a bold step towards reducing Nigeria’s reliance on steel imports, which currently cost the nation over $4 billion annually. “This revival will not only save foreign exchange but also lay the groundwork for sustainable economic growth,” he stated.
READ ALSO: Senate investigates Ajaokuta steel company over $496m settlement
As part of the agreement, Tyazhpromexport will work alongside its partners, Novostal M and Proforce Manufacturing Limited, to conduct comprehensive audits of the plant and outline detailed plans for its future operations. The consortium has expressed strong commitment to meeting the Nigerian government’s expectations.
The potential impact of this project is substantial. The revitalization of the Ajaokuta Steel Plant and the National Iron Ore Mining Company (NIOMCO) could generate over 500,000 direct and indirect jobs, contributing significantly to the national economy and supporting President Bola Tinubu’s ambition of achieving a $1 trillion economy by 2030.
READ ALSO: Senate Sets Up Committee to Investigate Abandoned Projects Nationwide
During the trip, the Nigerian delegation inspected the facilities of Novostal M in Balakovo, where discussions focused on the strategic importance of the steel sector for Nigeria’s industrial landscape.
The signing of this MOU is poised to transform Nigeria’s industrial capabilities and mark a new era for the nation’s economic development.