Nigeria Signs Landmark Gas Deal to Revive Ajaokuta Steel Company
Nigeria's Ajaokuta Steel Company may finally break free from years of dormancy as the federal government secures a landmark 20-year gas supply deal. The agreement, signed during the NOG Energy Week in Abuja, guarantees three million standard cubic feet of firm gas daily and an additional 47 million standard cubic feet of interruptible gas to power the steel complex.
The Memorandum of Understanding (MoU) also commits parties to collaborate on manufacturing steel products for Nigeria's oil and gas industry. Industry experts say this development extends beyond reviving a single factory, potentially reducing the country's dependence on imported steel, conserving scarce foreign exchange, and strengthening domestic industrial capacity.
According to an anonymous Ministry official, the latest agreement provides the strongest commercial foundation the Ajaokuta project has had in decades. The official emphasized that guaranteed and affordable energy is critical for steel production, and the gas supply deal offers investors the certainty they require before committing to rehabilitation and operations.