Ajaokuta Gas Supply Deal Signals Fresh Push to Revive Nigeria’s Steel Giant – TMSG By Raymond Enoch
The Tinubu Media Support Group (TMSG) has described the newly signed gas supply agreement between the Nigerian National Petroleum Company Limited (NNPCL) and the Ajaokuta Steel Company as a major milestone in the Federal Government’s renewed effort to revive the country’s long-dormant steel complex after more than four decades.
In a statement jointly signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said the agreement demonstrates President Bola Ahmed Tinubu’s commitment to fulfilling his campaign pledge to restore the Ajaokuta Steel Complex as a catalyst for Nigeria’s industrial transformation.
According to TMSG, the Memorandum of Understanding (MoU) for a 20-year gas supply marks a turning point in the history of the steel plant, which has remained largely inactive since its establishment in 1979 despite repeated attempts by successive administrations to make it operational.
The group noted that the agreement addresses one of the critical challenges that had hindered the completion and operation of the steel complex, describing reliable gas supply as essential to the plant’s future productivity.
It also endorsed the position of the Minister of Steel Development, Prince Shuaibu Abubakar Audu, who described the gas supply arrangement as a game changer in the Federal Government’s drive to finally bring the facility back into operation.
TMSG further commended the NNPCL under its current management for executing the agreement alongside other strategic gas supply and network entry deals, saying the development reflects the company’s renewed capacity to support key national industrial projects.
According to the group, the agreement provides for the delivery of 3 million standard cubic feet per day (MMscf/d) of firm gas supply and an additional 47 MMscf/d of interruptible gas volumes to serve as feedstock for the steel complex.
It argued that the guaranteed gas supply removes a major obstacle that had discouraged investors and fuelled widespread scepticism over the viability of the Ajaokuta Steel Project.
The group recalled that President Tinubu, while campaigning in February 2023, pledged to revive the steel plant as part of a broader strategy to stimulate local steel production, strengthen Nigeria’s manufacturing base, reduce import dependence and create thousands of jobs.
TMSG expressed confidence that with the gas supply challenge now being addressed, investor confidence would improve, paving the way for strategic partnerships capable of completing the steel complex and unlocking its economic potential.
The group added that a fully operational Ajaokuta Steel Complex would place Nigeria on a stronger path towards industrialisation and economic diversification, while urging Nigerians to remain confident in the Tinubu administration’s commitment to delivering on its promises.
