On September 22, according to Nigerian media reports, a Nigerian delegation led by Prince Shuab Abubakar Oudu, Minister of Steel Development of the Federal Government of Nigeria, recently visited Moscow, Russia for work. During this period, Nigeria signed a memorandum of understanding with Tyazhpromexport (TPE), the original builder of Ajaokuta Steel Plant, and its consortium members Novostal M and Proforce Manufacturing Limited to repair, complete, and operate Ajaokuta Steel Plant (ASP) and National Iron Ore Mining Company (NIOMCO) located in Kogi State, Nigeria.
In August 2024, a consortium led by TPE conducted preliminary inspections of the Ajaokuta steel plant and Itape iron ore mining site, and subsequently invited the Russian Federation to sign a memorandum of understanding. The Russian Federation accepted this request. The head of the News and Public Relations Department, Salamatu F. Gibania, issued a statement on Friday stating that Prince Shuaib, the Minister of Steel Development, stated that this is a bold step towards laying a sustainable foundation for Nigeria's economic industrialization. He pointed out that the recovery of the steel industry will reduce Nigeria's annual steel product imports of over $4 billion and help save scarce foreign exchange.
During the visit, the Nigerian delegation met with Alexei Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation. The TPE led consortium assures the Nigerian delegation that it is prepared to meet the expectations outlined in the memorandum of understanding. The Nigerian delegation also inspected the facilities of Novostal M Company located in Balakovo, Saratov State, including its electric arc furnace with an annual production capacity of 1.2 million metric tons of steel products and private port facilities.
Dr. Chris Osa Itopovu, Permanent Secretary of the Ministry of Steel Development, affirmed the commitment of the Nigerian government to renovate the Ajaokuta steel project and the national iron ore mining company Itape. Novostal-M, the president of the metallurgical holding company, stated that after conducting a comprehensive audit of the factory, they are preparing to submit a detailed project proposal. Mr. Egorov Sergei Anatolevich, General Manager of TPE, and Mr. Adetokunbo Ogundeyin, Managing Director of Proforce Manufacturing Limited Group, assured the Nigerian delegation of their commitment to the project. They believe that the project is crucial to the overall economic development of Nigeria and request the Nigerian government to provide a favorable environment.
Both sides are optimistic that the full implementation of the memorandum of understanding will promote the revival of Ajaokuta Steel Limited (ASCL) and Nigeria National Steel Corporation (NIOMCO), and may create over 500000 direct and indirect employment opportunities for Nigerians, making a significant contribution to President Tinubu's desire to grow the economy to over $1 trillion by 2030. Accompanying the Minister of Iron and Steel Development on this important visit are Dr. Chris Osa Itopovu, Permanent Secretary of the Ministry of Iron and Steel Development, Sumaira Abdul Akbar, sole manager of Ajaokuta Steel Co., Ltd., engineer Lotto Festus Isinmidun, acting sole manager of Itape National Iron Ore Mining Company, Mr. Umar Adamu Zoho, acting director of the Ministry of Iron and Nonferrous metals, and his technical advisor Mr. Anikwe Patrick Chinwuba.
