News

Revitalization of Ajaokuta Steel Plant Set to Begin in Q1 2025 – Natasha Akpoti

Published by Tope Fakinlede on December 6th, 2024.

Revitalization of Ajaokuta Steel Plant Set to Begin in Q1 2025 – Natasha Akpoti

Natasha Akpoti-Uduaghan, the Chairperson of the Senate Committee on Local Content, has announced that efforts to revitalize the Ajaokuta Steel Company will begin in the first quarter of 2025.

In September, Shuaibu Audu, Nigeria’s Minister of Steel Development, signed a Memorandum of Understanding (MoU) with Tyazhpromexport (TPE), the original builders of the Ajaokuta steel plant, for the plant’s rehabilitation, completion, and operation, along with the National Iron Ore Mining Company (NIOMCO).

During her address at the ongoing Practical Nigerian Content Forum, organized by the Nigerian Content Development and Monitoring Board (NCDMB) in Bayelsa State, Akpoti-Uduaghan confirmed that the federal government has identified the primary contractors responsible for the project and that work will soon commence to revive the plant.

She also expressed gratitude to President Muhammadu Buhari for his dedication and political will to ensure the plant’s restoration by reconnecting it with its original builders.

“We are hopeful that by the first quarter of next year, Tyazhpromexport, the original builders, will be on-site to begin the plant’s revitalization,” Akpoti-Uduaghan stated. “This marks a significant step in positioning Nigeria to produce essential machinery and components for the oil and gas industry.”

The senator also highlighted the high costs involved in deep-water oil operations, mentioning that rigs required for such operations can cost anywhere from $10 million to $25 million.