Nigeria & Russian Consortium Sign Agreement On ASP And NIOMCO

Nigeria has entered into an agreement with a Russian consortium to rehabilitate, complete, and operate both the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company Limited.

According to a statement by Salamatu F. Jibaniya, Head (Press & Public Relations Department) Ministry of Steel Development, “The Federal Government of Nigeria through the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, who led a Nigerian delegation to Moscow, Russia from 14th – 21st September, 2024, on a working visit, has signed a Memorandum of Understanding (MoU) with the original builders of Ajaokuta Steel Plant Messrs, Tyazhpromexport (TPE) and members of their consortium namely; Novostal M and Proforce Manufacturing Limited for the Rehabilitation, Completion and Operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) in Kogi State, Nigeria”.

“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.”

“Prince Shuaibu, who is driving Mr. President’s mandate for the revitalization, completion and operation of Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO), said this is a bold step towards creating a sustainable base for the industrialization of the Nigeria economy, noting that The revival of the Steel sector will also reduce importation of Steel products into Nigeria which is estimated at over $4billion annually and will help save scarce foreign exchange.”

“During the visit, the Nigerian delegation met with the Deputy Minister of Industry and Trade of the Russian Federation, Mr. Alexey V. Gruzdev and the consortium led by TPE assured the Nigerian Delegation of the readiness of the Consortium to meet the expectations of the MoU with the Nigerian Government.”

“The Nigerian delegation led by the Nigeria Minister of Steel 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 1.2Million metric tonnes of Steel products per annum with a staff strength of 3,900 workers.”