Ajaokuta Steel secures 20-year gas supply deal with NNPC

The Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Prof. Nasir Abdulsalam, has secured a major milestone in the company’s revival with the signing of a 20-year Gas Supply Agreement and Memorandum of Understanding (MoU) with Nigerian National Petroleum Company Limited.

The agreement is regarded as a significant step toward the long-awaited resuscitation of the Ajaokuta Steel Plant, addressing one of the key obstacles that has delayed the full operationalisation of the strategic national asset for over four decades.

Industry stakeholders have consistently identified access to a reliable long-term gas supply as a major requirement for attracting investors to the steel complex. With the agreement now in place, the company is expected to be better positioned to advance plans for full-scale production and industrial operations.

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The development aligns with the industrialisation and economic diversification objectives of the administration of Bola Ahmed Tinubu, which has prioritised the revitalisation of critical infrastructure under the Renewed Hope Agenda.

The gas supply agreement is expected to strengthen investor confidence, accelerate the completion of outstanding phases of the project, create thousands of direct and indirect jobs, boost local manufacturing capacity, and reduce Nigeria’s reliance on imported steel products.

The latest development marks a significant milestone in the efforts to revive the Ajaokuta Steel Plant and raises expectations that production at Africa’s largest integrated steel complex could move closer to reality.