The Federal Government has taken a major step towards reviving the Ajaokuta Steel Company Limited (ASCL) following the signing of a 20-year gas supply agreement between the Nigerian National Petroleum Company (NNPC) Limited and the steel company.
The Memorandum of Understanding (MoU) for a Sale and Purchase Agreement was signed at the NNPC Towers in Abuja, paving the way for a reliable gas supply that will power the long-awaited resuscitation and operation of the Ajaokuta Steel Plant.
The agreement aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises industrialisation, economic diversification and sustainable economic growth through strategic investments.
Speaking during the signing ceremony, the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, reaffirmed the company’s commitment to ensuring a dependable and commercially viable gas supply to support the successful revival of the steel complex.
He revealed that both organisations have already established a joint implementation team to accelerate the technical and commercial aspects of the project.
Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described the agreement as a landmark achievement in the Federal Government’s efforts to bring Ajaokuta Steel Company back to life. According to him, the partnership provides the critical energy infrastructure needed to recommission the plant.
Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Prof. Nasir Abdulsalam, said the agreement removes one of the major barriers that had hindered the commencement of steel production.
He noted that the guaranteed gas supply for the next two decades addresses a key concern repeatedly raised by prospective investors.
Also speaking, the Minister of Steel Development, Prince Shuaibu Abubakar Audu, described the agreement as a game changer that strengthens the Federal Government’s commitment to restoring Ajaokuta Steel Company to full operation.
According to the minister, the availability of a dedicated gas supply is a critical requirement for the successful revitalisation of the steel plant and will help unlock its vast industrial and economic potential.
Prince Audu stressed that reviving Ajaokuta Steel remains a key component of the Tinubu administration’s industrialisation agenda, noting that the project will increase local steel production, reduce dependence on imported steel products, create employment opportunities and stimulate growth across several sectors of the economy through the utilisation of Nigeria’s abundant gas resources.
He reaffirmed the Ministry of Steel Development’s commitment to working with the Ministry of Petroleum Resources, NNPC Limited and other stakeholders to ensure the successful revival of the steel plant in line with the administration’s goal of building a one-trillion-dollar economy by 2030.
The ceremony was attended by the Executive Vice President, Gas, Power and New Energy at NNPC Limited, Mr. Olalekan Ogunleye, the Managing Directors of NNPC Gas Infrastructure Company (NGIC) and NNPC Gas Marketing Limited (NGML), Mr. Declan Nwokoro, alongside other senior officials of NNPC Limited.
