The Minister of Steel Development, Prince Shuaibu Abubakar Audu, has described the Memorandum of Understanding (MoU) for a Sale and Purchase Agreement that will guarantee gas supply for the revitalization and operation of the Ajaokuta Steel Plant over the next 20 years as a “game changer” in government’s efforts to restore the plant to full operation.
He said the dedicated gas supply addresses one of the critical enablers required for the plant’s revitalisation and brings the country closer to unlocking its industrial and economic potential.
Speaking at the MoU signing ceremony between Nigerian National Petroleum Company (NNPC) Limited and Ajaokuta Steel Company Limited (ASCL) on Tuesday, Prince Audu noted that reviving Ajaokuta remains central to the Tinubu administration’s industrialisation agenda, stressing that the project would boost local steel production, cut import dependence, create jobs, and stimulate growth across key sectors through increased domestic utilisation of the country’s gas resources.
He reaffirmed his ministry’s commitment to working with the Ministry of Petroleum Resources and other stakeholders to ensure the plant’s successful resuscitation, in line with the President’s goal of a $1 trillion economy by 2030.
The agreement, signed at the NNPC Towers in Abuja, is expected to provide the critical gas infrastructure required to power the resuscitation of the nation’s foremost integrated steel plant, in line with President Bola Tinubu’s Renewed Hope Agenda for industrialisation, economic diversification, and sustainable growth.
The ceremony was also attended by the Executive Vice President, Gas, Power and New Energy at NNPC, Mr. Olalekan Ogunleye; the Managing Directors of NNPC Gas Infrastructure Company (NGIC) and NNPC Gas Marketing Limited (NGML), Mr. Declan Nwokoro; and senior officials of NNPC Limited.
NNPC pledges reliable supply
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, reaffirmed the company’s commitment to delivering a reliable and commercially viable gas supply in support of Ajaokuta’s revival. He disclosed that a joint implementation team had already been constituted to fast-track execution of the commercial and technical components of the partnership.
Also speaking, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described the agreement as a major milestone in government’s drive to revive Ajaokuta Steel Company, noting that the partnership would provide the gas supply required to power the plant’s recommissioning.
Breakthrough for stalled plant, says ASCL boss
Signing on behalf of Ajaokuta Steel Company Limited, its Managing Director and Chief Executive Officer, Prof. Nasir Abdulsalam, described the MoU as a major breakthrough that removes one of the biggest obstacles to the commencement of steel production at the plant. He said the deal guarantees a reliable gas supply to the complex for two decades, addressing a requirement that prospective investors had consistently flagged as a barrier to the plant’s operationalisation.
