Promise: To resuscitate the Ajaokuta Steel Company
April 13, 2022

Russia-Ukraine Conflict threaten the Rehabilitation of Ajaokuta Steel Company

Promise: To resuscitate the Ajaokuta Steel Company

Musa Zayyad
Musa Zayyad
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Last Updated
April 13, 2022
3
min read

Ajaokuta Steel Company Limited (ASCL) popularly known as Ajaokuta Steel Mill is the largest steel mill in the country; located in Ajaokuta, Kogi State, Nigeria, the Ajaokuta Steel Company Limited was incorporated in 1979, and the steel mill reached 98% completion in 1994, with 40 of the 43 plants at the facility having been built.

The current administration in its drive to boost industrial output and increase its contributions to the economy of the country pledged to complete the rehabilitation and construction of the Steel company in its 2019 Next-Level Manifesto.

Promise: To resuscitate the Ajaokuta Steel Company

Udeme reported that “In 2020 the Minister of Mines and Steel Development, Olamilekan Adegbite said $1 billion would come from African Export–Import Bank, while $460 million would come from Russian Export Centre. He added that the Memorandum of Understanding, MOU, would be sealed this month (January 2020) to guide the transaction, adding: “Contract Agreement with the Japanese government would also be signed and it would take about two or three years to execute it.”

Due to the ongoing conflict between Russia and Ukraine,  funding and technical support for the resuscitation of the steel plant is under threat. Abdulkareem in his report “The minister noted recently that the deal with Russia involved a $2 million fee for technical audit to ascertain the state of the facility before work could begin, and that President Muhammadu Buhari approved the payment we made frantic efforts to continue the negotiations with Russia after the lockdown, but progress was stalled again due to the current conflict between Russia and Ukraine”.

The threat posed by the current geopolitical conflict between Ukraine and Russia has stalled the progress of the Project and it remains doubtful whether the project can be completed before President Muhammadu Buhari leaves office in 2023, therefore this promise is rated Stalled.

Reference:

Udeme Akpan. “FG secures $1.46bn to fund completion of Ajaokuta steel”,
Vanguard 15 January 2020,
https://www.vanguardngr.com/2020/01/fg-secures-1-46bn-to-fund-completion-of-ajaokuta-steel/, Accessed 8 April 2022.
Abdulkareem Mojeed. “Buhari govt unlikely to fix Ajaokuta steel as planned” The Punch 31 March, 2022,
https://www.premiumtimesng.com/business/business-news/521193-buhari-govt-unlikely-to-fix-ajaokuta-steel-as-planned-minister.html, Accessed 8 April, 2022.