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 significant milestone in the Federal Government’s efforts to revive the long-dormant steel complex.
In a statement jointly signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said the agreement demonstrated President Bola Tinubu’s commitment to fulfilling his promise to restore the 46-year-old steel plant and reposition it as a catalyst for Nigeria’s industrialisation.
According to TMSG, the Memorandum of Understanding (MoU) signed between NNPCL and Ajaokuta Steel Company for a 20-year gas supply marks a major breakthrough after decades of inactivity at the steel complex.
The group noted that the deal reflects the administration’s political will to address one of the key challenges that had hindered the operation of the steel plant for over four decades.
TMSG also commended the Minister of Steel Development, Prince Shuaibu Abubakar Audu, for describing the agreement as a game changer in the government’s renewed efforts to revive the facility.
It added that the agreement highlighted NNPCL’s renewed capacity under its current management, noting that the company also executed strategic Memoranda of Understanding, Gas Supply Agreements and Network Entry Agreements with four other firms.
According to the group, the agreement provides for the supply of 3 million standard cubic feet per day (MMscf/d) of firm contract volumes and 47MMscf/d of interruptible contract volumes to serve as feedstock for the steel complex.
TMSG expressed optimism that resolving the gas supply challenge would boost investor confidence and attract strategic partnerships needed to complete the steel plant and commence local steel production.
The group recalled that President Tinubu, during the 2023 presidential campaign, pledged to revive the Ajaokuta Steel Complex as part of efforts to promote industrial growth, create jobs and reduce Nigeria’s dependence on imported steel products.
It maintained that the latest development represents another step towards fulfilling that promise and urged Nigerians to remain confident in the administration’s commitment to unlocking the country’s industrial potential through the revitalisation of the Ajaokuta Steel Complex.
