The Federal Government has taken a major step towards reviving the Ajaokuta Steel Plant following the signing of a Memorandum of Understanding (MoU) on a 20-year gas supply agreement between Nigerian National Petroleum Company (NNPC) Limited and Ajaokuta Steel Company Limited (ASCL).
Speaking during the signing ceremony on Tuesday at the NNPC Towers in Abuja, the Minister of Steel Development, Shuaibu Abubakar Audu, described the agreement as a significant milestone in the government’s efforts to restore the steel plant to full operation. He said the long-term gas supply addresses one of the critical requirements for the plant’s revival and will help unlock Nigeria’s industrial potential.
Audu noted that the resuscitation of Ajaokuta Steel is a key component of President Bola Ahmed Tinubu’s industrialisation agenda. According to him, the project is expected to boost local steel production, reduce reliance on imports, create employment opportunities, and drive economic growth through improved utilisation of the country’s gas resources.
The minister also reaffirmed his ministry’s commitment to working with the Ministry of Petroleum Resources and other stakeholders to ensure the successful implementation of the project, adding that it supports the administration’s target of building a $1 trillion economy by 2030 under the Renewed Hope Agenda.
The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, said the company remains committed to providing a reliable and commercially sustainable gas supply for the steel plant. He disclosed that a joint implementation team has already been established to accelerate the technical and commercial execution of the agreement.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the agreement as a major breakthrough that would provide the energy needed to recommission the Ajaokuta Steel Plant and restore production activities.
The Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Nasir Abdulsalam, said the 20-year gas supply commitment eliminates one of the major concerns raised by prospective investors and clears a significant obstacle to the commencement of steel production.
The signing ceremony was attended by senior officials of NNPC Limited, including Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, Managing Director of NNPC Gas Infrastructure Company, Declan Nwokoro, and other top executives.
