NNPCL signs 20-year gas deal for Ajaokuta Steel
The Nigerian National Petroleum Company Limited (NNPCL) has signed a 20-year Gas Supply Agreement and a Memorandum of Understanding (MoU) with the Ajaokuta Steel Company Limited (ASCL), in a move expected to remove a major obstacle to the commencement of steel production at the long-idle plant.
Managing Director and Chief Executive Officer of ASCL, Prof. Nasir Abdulsalam, described the agreement as a significant breakthrough for the project, which has remained largely dormant since it was established 46 years ago.
The Nigerian National Petroleum Company Limited (NNPCL) has signed a 20-year Gas Supply Agreement and a Memorandum of Understanding (MoU) with the Ajaokuta Steel Company Limited (ASCL), in a move expected to remove a major obstacle to the commencement of steel production at the long-idle plant.
Managing Director and Chief Executive Officer of ASCL, Prof. Nasir Abdulsalam, described the agreement as a significant breakthrough for the project, which has remained largely dormant since it was established 46 years ago.
The agreement is expected to guarantee an uninterrupted gas supply to the steel complex for the next two decades, addressing a key requirement that prospective investors have consistently identified as critical to the plant’s revival.
The development is seen as a major step towards reviving Nigeria’s steel industry. Successive administrations have attempted to resuscitate the Ajaokuta Steel Plant, but the project has remained inactive despite decades of investment.
Analysts say the resolution of the gas supply challenge could boost investor confidence and pave the way for the completion of outstanding requirements needed to begin full-scale steel production.
They also believe the project could stimulate industrial growth, create thousands of direct and indirect jobs, strengthen local manufacturing, reduce reliance on imported steel and support Nigeria’s broader economic diversification efforts.
The agreement has been widely viewed as a significant milestone under President Bola Tinubu’s administration, whose Renewed Hope Agenda prioritises industrialisation and infrastructure development.
If successfully implemented, it could mark a major step towards bringing one of Africa’s largest integrated steel plants into operation.
