The federal government has taken a major step towards reviving Nigeria’s industrial sector with the signing of a 20-year gas supply agreement between the Nigerian National Petroleum Company (NNPC) Limited and the Ajaokuta Steel Company Limited (ASCL).
The agreement, formalised through a Memorandum of Understanding (MoU) and Sale and Purchase Agreement, is expected to provide the gas required to power the long-awaited resuscitation and operation of the Ajaokuta Steel Plant.
According to a statement issued by Lizzy Okoji, special assistant on Media to the Minister of Steel Development, the agreement was signed on Tuesday at the NNPC Towers in Abuja as part of the federal government’s commitment to revitalising the nation’s foremost integrated steel complex.
The statement noted that the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises industrialisation, economic diversification and sustainable economic growth.
At the ceremony, the group chief executive officer of NNPC Limited, Engr. Bayo Ojulari, reaffirmed the company’s commitment to providing a reliable and commercially viable gas supply to support the revival of the steel company.
Ojulari disclosed that both organisations have established a joint implementation team to fast-track the technical and commercial processes required for the execution of the agreement.
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described the partnership as a significant milestone in the Federal Government’s efforts to restore the steel plant, stressing that the guaranteed gas supply would provide the energy needed for its recommissioning.
Also speaking, the Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Prof. Nasir Abdulsalam, described the agreement as a major breakthrough that removes one of the key obstacles that had delayed steel production at the complex.
He noted that the 20-year gas supply commitment addresses a major concern consistently raised by prospective investors regarding the plant’s operational viability.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, hailed the agreement as a game changer in the government’s efforts to restore Ajaokuta Steel Company to full operation.
According to the minister, the availability of dedicated gas infrastructure provides one of the critical requirements for the revitalisation of the steel plant and brings Nigeria closer to unlocking Ajaokuta’s vast industrial and economic potential.
Audu reiterated that the revival of Ajaokuta Steel Company remains a key component of the Tinubu administration’s industrialisation agenda, noting that a fully operational steel plant would enhance local steel production, reduce dependence on imports, create thousands of jobs and stimulate growth across several sectors of the economy through increased utilisation of Nigeria’s abundant natural gas resources.
He assured that the Ministry of Steel Development would continue to work closely with the Ministry of Petroleum Resources and other stakeholders to ensure the successful resuscitation of the plant in line with the administration’s target of building a one-trillion-dollar economy by 2030.
The signing 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.
