The Federal Government has signed a Memorandum of Understanding (MoU) with a Russian consortium for the rehabilitation, completion, and operation of Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO), Itakpe.
The two companies are located in Kogi State, North Central Nigeria.
Salamotu F. Jibaniya, Head, Press & Public Relations Department of the Ministry of Steel Development confirmed the development in a press statement on Friday, September 20, 224.
The statement said the Russian consortium, led by Tyazhpromexport (TPE) and including Novostal M and Proforce Manufacturing Limited.
The MoU aims to restore the two critical infrastructure projects to full operational capacity.
The statement said the signing of the
MoU follows the Nigerian delegation’s visit to Moscow, Russia, from September 14th to 21st, 2024.
“It marks a significant milestone under the Renewed Hope Agenda of President Bola Ahmed Tinubu.
“The groundwork for this achievement was laid in July 2023, when Vice President Senator Kashim Shettima, representing the Nigerian government at the Russia-Africa Summit in Saint Petersburg, called on the Russian Federation to revisit the long-dormant Ajaokuta Steel project, a directive from President Tinubu.
“Responding positively to this call, the Russian Federation, through the TPE-led consortium, conducted preliminary inspections of both Ajaokuta Steel and the Iron Ore Mining site at Itakpe in August 2024.
“These inspections paved the way for the signing of the MoU, which formalizes the consortium’s commitment to reviving these vital industrial assets.
“The Minister of Steel Development, Prince Shuaibu Audu signed the MoU on behalf of the Federal Government.
“Audu, who is spearheading the President’s mandate to revitalize Nigeria’s steel sector, was accompanied on the Moscow trip by key officials, including Dr. Chris Osa Isokpunwu, Permanent Secretary of the Ministry; Engr. Sumaila Abdul-Akaba, Sole Administrator of Ajaokuta Steel; Engr. Loto Festus Isinmidun, Acting Sole Administrator of NIOMCO; and other senior ministry staff.
“During the visit, the Nigerian delegation met with Mr. Alexey V. Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation, and representatives from the TPE-led consortium.
“They assured the delegation of their readiness to meet the obligations of the MoU and ensure a successful revitalization of both ASCL and NIOMCO.
“Dr. Isokpunwu, the Permanent Secretary, reaffirmed Nigeria’s commitment to reviving the Ajaokuta Steel Plant and NIOMCO, which are crucial for industrializing the nation’s economy.
“The Nigerian team also visited Novostal M’s facility in Balakovo, Saratov region, which boasts an Electric Arc Furnace with an annual capacity of 1.2 million metric tonnes of steel products and a workforce of 3,900 employees.
“They also toured Novostal M’s private port facility, which handles raw materials for their operations.
“Novostal M’s President, Demchenko Ivan Ivanovich, assured the delegation of the consortium’s readiness to submit a detailed proposal after a comprehensive audit of the Ajaokuta Steel Plant.
“Similarly, Mr. Egorov Sergei Anatolevich, General Director of TPE, and Mr. Adetokunbo Ogundeyin, Group Managing Director of Proforce Manufacturing Limited, reiterated their commitment to the project, citing its critical role in Nigeria’s economic development.
“They also called on the Nigerian government to create an enabling environment for the project’s success.
“The successful implementation of the MoU is expected to breathe new life into ASCL and NIOMCO, potentially generating over 500,000 direct and indirect jobs and significantly boosting the Nigerian economy.
“This project is also expected to contribute to President Tinubu’s ambition of growing Nigeria’s economy to over $1 trillion by 2030.
“Furthermore, the revival of the steel sector could save Nigeria over $4 billion in annual steel imports, conserving valuable foreign exchange reserves,” Jibaniya explained. (vitalnewsngr.com)
