By joshua NNPC, Ajaokuta Steel Company Sign 20-Year Gas Supply Deal
…. As FG Strengthens Commitment to Industrialisation Through Strategic Partnership
The Federal Government has recorded another significant milestone in its efforts to revive Nigeria’s industrial sector as the Nigerian National Petroleum Company (NNPC) Limited and the Ajaokuta Steel Company Limited (ASCL) signed a Memorandum of Understanding (MoU) for a Sale and Purchase Agreement to provide Gas for the revitalisation and operation of the Ajaokuta Steel Plant for the next 20 years.
The agreement, signed on Tuesday, July 7, 2025 at the NNPC Towers in Abuja, will provide the critical gas infrastructure required to power the resuscitation of the nation’s foremost integrated steel plant, in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda for industrialisation, economic diversification and sustainable economic growth.
Speaking at the signing ceremony, the Group Chief Executive Officer (GCEO) of NNPC Limited, Engr. Bayo Ojulari, reaffirmed the company’s commitment to delivering a reliable and commercially viable gas supply to support the successful revival of Ajaokuta Steel Company. He disclosed that a joint implementation team has already been constituted to fast-track the execution of the commercial and technical components of the partnership.
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described the agreement as a major milestone in the Federal Government’s drive to revive Ajaokuta Steel Company, noting that the partnership will provide the critical gas supply required to power the plant’s recommissioning.
Signing the MoU, the Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Prof. Nasir Abdulsalam, described the agreement as a major breakthrough that removes one of the biggest obstacles to the commencement of steel production at Ajaokuta Steel Plant. He noted that the deal guarantees a reliable gas supply to the steel complex for two decades addressing a critical requirement consistently identified by prospective investors as a bane to the plant’s operationalisation.
Also in attendance at the event, the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, described the execution of the agreement as a “game changer” in the Federal Government’s efforts to restore Ajaokuta Steel Company to full operation. He said the availability of a dedicated gas supply facilitates one of the critical enablers required for the revitalisation of the steel plant and brings Nigeria closer to unlocking the enormous economic and industrial potential of Ajaokuta.
Minister Audu noted that reviving Ajaokuta Steel Company Limited remains central to the Tinubu Administration’s industrialisation agenda, as the project will boost local steel production, reduce dependence on imports, create jobs and stimulate growth across key sectors of the economy through increased domestic utilisation of Nigeria’s abundant gas resources. He reaffirmed the Ministry’s commitment to working closely with the Ministry of Petroleum Resources and all relevant stakeholders to ensure the successful resuscitation of Ajaokuta Steel Plant in line with President Tinubu’s Renewed Hope Agenda of achieving a $1 trillion economy by 2030.
The ceremony was also attended by the Executive Vice President, Gas, Power and New Energy at NNPC, Mr. Olalekan Ogunleye; the Managing Directors of NNPC Gas Infrastructure Company (NGIC) and NNPC Gas Marketing Limited (NGML), Mr. Declan Nwokoro, as well as senior officials of NNPC Limited.
Signed:
Lizzy Okoji
Special Assistant (Media) to the Honourable Minister of Steel Development,
Prince Shuaibu Abubakar Audu
July 8, 2026