Nigeria has signed a memorandum of understanding (MoU) with the builders of Ajaokuta steel plant, Messrs Tyazhpromexport (TPE), for the rehabilitation
Nigeria has signed a memorandum of understanding (MoU) with the builders of Ajaokuta steel plant, Messrs Tyazhpromexport (TPE), for the rehabilitation, completion, and operation of the plant and the National Iron Ore Mining Company (NIOMCO).
According to Shuaibu Audu, minister of steel development, the MOU was signed when he led a Nigerian delegation to Moscow, Russia, from September 14 to 21.
Novostal M and Proforce Manufacturing Limited, described as members of Tyazhpromexport’s consortium, were also involved in the MoU.
According to the statement, the Nigerian delegation also inspected the facilities of Messrs Novostal M, located in Balakovo in the Saratov region of Russia.
In August, Messrs TPE experts visited the steel plant and the iron ore mining site at Itakpe for preliminary inspections, leading to the invitation for the MoU’s signing.
Speaking on the development, Audu said the deal is a bold step towards creating a sustainable base for the industrialisation of Nigeria’s economy.
Demchenko Ivanovich, president of Novostal M Metallurgical Holding, assured the Nigerian delegation of the company’s readiness to submit a detailed proposal for the project after the comprehensive audit of the plant.
Egorov Anatolevich, general director of Messrs TPE, and Adetokunbo Ogundeyin, group managing director of Proforce Manufacturing, assured the Nigerian team of their dedication to the project due to its critical role in the overall economic development of the West African nation.
They said the full implementation of the MoU would facilitate the revival of the plant and NIOMCO and could create over 500,000 direct and indirect jobs for Nigerians.
According to the duo, it would also increase the size of the economy by billions of dollars, thus contributing immensely to President Bola Tinubu’s desire to grow the economy to over $1 trillion by 2030.
The executives, however, asked for the provision of an enabling environment by the Nigerian government.
