Nigeria in talks with China to revive Ajaokuta steel, NIOMCO as Russia deal stalls

The federal government has initiated talks with the Republicof China to take over the revitalisation of the Ajaokuta Steel Company Limited(ASCL) and the National Iron Ore Mining Company (NIOMCO). Shuaibu Abubakar, the minister of steel development, spokeon Tuesday at the opening of the 10th edition of Nigeria’s Mining Week, themed‘Nigeria Mining: From Progress to Global Relevance,’ in Abuja. Abubakar said the ministry is exploring the partnershipafter a previous agreement with Russia was abandoned due to complications fromthe war with Ukraine. He explained that the war hindered progress on thegovernment’s memorandum of understanding (MoU) with Tyazhmashpromexport (TPE)to rehabilitate, complete, and operate the ASCL and NIOMCO Itakpe in Kogistate, signed in September 2024. “Mr President will give the final approval based onfinancial, managerial and technical competencies,” the minister said. Abubakar said President Bola Tinubu’s government hasremained resolute in reviving the steel company from its nearly five-decadecomatose state. He added that the ministry is nearing a deal with theministry of defence and the Defence Industries Corporation of Nigeria (DICON)to produce military hardware inputs, including rifles, vests, helmets, andbullets, at Ajaokuta steel complex’s engineering workshop. “This understanding is to support the defence sector of theNigeria economy for improved security,” the minister said. Abubakar also said the National Steel Raw MaterialsExploration Agency in Kaduna has identified 12 iron ore deposits across thecountry, currently at various stages of exploration, and is working to generateresource data to drive investments in the sector. He said the local steel production would boost demand forraw materials like iron ore, limestone, dolomite, refractory coal, and coal,yielding economic benefits. The minister urged private sector players to invest in thesteel raw materials value chain to drive sector growth. “We are collaborating with critical stakeholders across thefederal government, especially our sister Ministry of Solid MineralsDevelopment in this regard,” he said. Abubakar added that the federal government’s efforts toboost the Nigerian steel industry’s growth through foreign direct investmenthinge on a sustainable supply of mineral raw materials.

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