The Nigerian government has signed a Memorandum of Understanding (MoU) with the original builders of the Ajaokuta Steel Plant, Thermometer (TPE), and its consortium members, Novostal M and Proforce Manufacturing Limited. This agreement aims to rehabilitate, complete, and fully operate the Ajaokuta Steel Plant (ASP) and the National Iron Ore Mining Company (NIOMCO) located in Kogi State, Nigeria.
The MoU was signed by Nigeria’s Minister of Steel Development, Shuaibu Abubakar Audu, who led a delegation to Moscow, Russia, from September 14 to 21, 2024. This working visit solidified the collaboration, which is seen as crucial to revitalizing Nigeria’s steel sector. A statement from Salamatu F. Jibaniya, head of press and public relations for the Federal Ministry of Steel Development, explained that the Russian Federation accepted the proposal after a consortium led by TPE visited the steel plant and iron ore mining site in August 2024 for preliminary inspections. Following these inspections, the MoU was signed to formally commit to the project.
Minister Audu emphasized the importance of the MoU, calling it a critical step towards establishing a sustainable industrial base for Nigeria. He highlighted that reviving the steel sector will not only reduce Nigeria’s dependency on imported steel—currently costing over $4 billion annually—but also help conserve foreign exchange reserves.
During the Moscow visit, the Nigerian delegation met with Russia’s Deputy Minister of Industry and Trade, Alexey V. Gruzdev, and representatives of the TPE-led consortium. Both parties expressed confidence in fulfilling the MoU’s objectives and assured Nigeria of their readiness to move forward. The delegation also toured Novostal M’s facilities in Balakovo, Saratov region, where they observed the plant’s full operations, including its Electric Arc Furnace with a capacity of 1.2 million metric tonnes of steel annually and a workforce of 3,900 employees.
Chris Osa Isokpunwu, permanent secretary of Nigeria’s Ministry of Steel Development, reaffirmed Nigeria’s commitment to rejuvenating both the Ajaokuta Steel Project and NIOMCO. The head of Metallurgical Holding, Demchenko Ivan Ivanovich, expressed confidence in submitting a detailed project proposal once a comprehensive audit of the plant is completed. Furthermore, key leaders from TPE and Proforce Manufacturing Limited, including Egorov Sergei Anatolevich and Adetokunbo Ogundeyin, stressed their dedication to the project due to its crucial role in Nigeria’s economic growth.
The MoU’s successful implementation could create over 500,000 direct and indirect jobs, significantly boost Nigeria’s economy, and contribute to President Bola Tinubu’s vision of growing the Nigerian economy to over $1 trillion by 2030.