Mkpoikana Udoma
Port Harcourt — The federal government has signed an agreement with Russian Consortium Tyazhpromexport TPE, for the rehabilitation, completion, and operation of Ajaokuta Steel Company Limited and National Iron Ore Mining Company Limited.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, who is currently in Moscow, Russia 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.
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.
Speaking, the Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the MoU was a bold step towards creating a sustainable base for the industrialization of the Nigerian economy.
“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.”
The Permanent Secretary, Ministry of Steel Development, Dr. Chris Osa Isokpunwu, affirmed the commitment of the Nigerian Government to revamp the Ajaokuta Steel Project and National Iron Ore Mining Company, Itakpe.
During the visit, the Nigerian delegation met with Russia’s Deputy Minister of Industry and Trade, Mr. Alexey V. Gruzdev, and the consortium led by TPE assured the Nigeria of the readiness of the Consortium to meet the expectations of the MoU with the Nigerian Government.
The President of Metallurgical Holding, Novostal – Mr. Demchenko Ivan Ivanovich assured the delegation of their readiness to submit a detailed proposal for the project after the comprehensive audit of the Plant.
The General Director of Messrs. TPE, Mr. Egorov Sergei Anatolevich and the Group Managing Director of Proforce Manufacturing Limited, Mr. Adetokunbo Ogundeyin assured the Nigerian delegation of their commitment to the project because of its critical role in the overall economic development of Nigeria and requested for the provision of an enabling environment by the Nigerian Government.
The parties expressed their optimism that the full implementation of the MoU will facilitate the revival of both Ajaokuta Steel Company Limited and NIOMCO and could create over 500,000 direct and indirect jobs for Nigerians and increase the size of the economy by billions of dollars.
