Ajaokuta Gas Supply Deal Marks Major Milestone in Reviving Steel Complex – TMSG

The Tinubu Media Support Group (TMSG) has described the agreement between the Nigerian National Petroleum Company Limited (NNPCL) and the Ajaokuta Steel Company Limited (ASCL) on long-term gas supply as a significant milestone in the President Bola Ahmed Tinubu administration's efforts to revive the steel complex after more than four decades of inactivity.

In a statement jointly signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said the landmark agreement reflects the administration's political will and determination to fulfil President Tinubu's pledge to restore the Ajaokuta Steel Complex as a catalyst for Nigeria's industrial development.

The statement read:

*"After more than four decades of stagnation, the stage is now set for the revival of the Ajaokuta Steel Complex following the signing of a 20-year gas supply agreement between the company and the Nigerian National Petroleum Company Limited (NNPCL).

"This is a major milestone that underscores President Bola Ahmed Tinubu's commitment to fulfilling the promise he made during the 2023 presidential campaign to revive the steel plant and reposition it as a cornerstone of Nigeria's industrialisation.

"We share the view of the Minister of Steel Development, Prince Shuaibu Abubakar Audu, that securing a reliable gas supply is a game-changing development in the Federal Government's determined effort to restore the steel complex after decades of inactivity.

"The agreement also highlights the renewed capacity of the NNPCL under its current management, which simultaneously executed strategic Memoranda of Understanding, Gas Supply Agreements and Network Entry Agreements with four other companies.

"The gas supply arrangement removes one of the biggest constraints that has hindered the operation of the Ajaokuta Steel Complex for years. Understandably, many Nigerians had become sceptical after decades of failed attempts to revive the facility, with some believing that any further investment would amount to another wasted effort.

"However, we understand that the agreement guarantees the supply of 3 million standard cubic feet per day (3MMscf/d) of firm gas volumes and 47 million standard cubic feet per day (47MMscf/d) of interruptible gas volumes as feedstock for the steel complex.

"This demonstrates that the Tinubu administration is breathing new life into the Ajaokuta Steel Complex with the objective of launching the industrial transformation envisioned by its founders when the project was conceived in 1979.

"We recall that President Tinubu, as the APC presidential candidate in February 2023, pledged to revive the steel complex. This agreement represents another concrete step towards fulfilling that commitment by laying the foundation for domestic steel production, industrial growth and large-scale job creation.

"We are confident that with the longstanding challenge of gas supply now substantially addressed, investors will be encouraged to partner with the Federal Government to complete the steel complex and transform it into a key driver of Nigeria's long-awaited industrial revolution."*

TMSG noted that the revitalisation of the Ajaokuta Steel Complex would significantly strengthen Nigeria's manufacturing base, reduce dependence on imported steel, create employment opportunities and unlock the country's vast industrial potential.

The group urged Nigerians to remain confident in the Tinubu administration's resolve to deliver on its promises and sustain reforms aimed at driving economic growth and industrial development.