Nigeria Enters Negotiations with Russia to Revive Steel Mill Project

27 April

The Nigerian government has initiated negotiations with the original contractor, VO Tyazhpromexport, part of Rostec, to revive a major project aimed at establishing a steel mill in Ajaokuta. Vanguard newspaper reported this, citing a statement from Nigeria's Minister of Steel Development, Shuaibu Audu.


According to the statement, the minister convened a meeting with representatives of a consortium consisting of Tyazhpromexport, Novostal, and Proforce Nigeria. He urged them to develop a plan to expedite the revival of the mill project, aligning with President Bola Tinubu's Renewed Hope Agenda. This agenda focuses on ensuring Nigeria's steel production and industrialization in the coming years.


The minister also expressed his intention to visit Moscow at the invitation of Tyazhpromexport and other consortium members for further negotiations to secure the $2 billion funding required to revive the mill. He stated that the success of the project would mark a significant step towards Nigeria's industrialization.


The Ajaokuta plant was established in 1979 with assistance from the USSR. Until 1994, construction was led by Tyazhpromexport, with the work reaching 98% completion, including the construction of three rolling mills and a combined heat and power plant. In subsequent years, Nigeria attempted unsuccessfully to complete the complex with various companies, including those from the USA. Presently, about 75% of the complex's capacity remains idle, with only a few small mills producing steel bars in operation.


The Nigerian government anticipates that the plant will help meet domestic steel demand while reducing the country's budget dependence on oil exports.



GSV "Russia - Islamic World"

Photo: Federation Council

Based on materials from TASS