Ajaokuta Steel’s long-awaited revival has received a major boost following the signing of a 20-year gas supply agreement between the Nigerian National Petroleum Company (NNPC) Ltd and Ajaokuta Steel Company Ltd (ASCL).
The Tinubu Media Support Group (TMSG), in a statement issued on Sunday in Abuja by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, said the agreement would provide the reliable gas supply needed to restart operations at the steel complex after decades of inactivity.
According to the group, the deal aligns with President Bola Tinubu’s Renewed Hope Agenda by advancing industrialisation, economic diversification and sustainable economic growth.
TMSG said the agreement represents significant progress in the federal government’s efforts to restore the steel plant and fulfil President Tinubu’s commitment to revive Nigeria’s foremost integrated steel complex.
“We agree with the Minister of Steel Development, Prince Shuaibu Audu, that the deal for feedstock to the complex is a game changer in the federal government’s effort to get the plant back to life after decades of inactivity.
“It also reflects NNPCL’s capacity under its new management, especially as it sealed strategic Memoranda of Understanding, gas supply agreements and network entry agreements with four other companies aside from ASCL.
“To be clear, the gas supply deal for the steel complex is bound to remove a major obstacle to the operation of the plant, which many Nigerians had unfortunately given up on,” the statement said.
The group noted that the agreement guarantees the daily supply of three million standard cubic feet of gas, with an additional 47 million standard cubic feet available when required to support the plant’s operations.
It expressed optimism that resolving the gas supply challenge would restore investor confidence, attract private sector participation, accelerate the completion of the project and unlock the plant’s economic and industrial potential.
Earlier, the Minister of Steel Development, Prince Shuaibu Audu, said dedicated gas supply would address one of the critical requirements for revitalising Ajaokuta Steel, boost local steel production, reduce import dependence, create jobs and stimulate growth through increased utilisation of Nigeria’s gas resources.
