A major milestone has been recorded in Nigeria’s industrial sector following the signing of a 20-year Gas Supply Agreement between the Ajaokuta Steel Company Limited and the Nigerian National Petroleum Company Limited (NNPCL).
The agreement, signed by the Managing Director and Chief Executive Officer of Ajaokuta Steel Company Limited, Prof. Nasir Abdulsalam, is expected to provide the steel plant with a stable and uninterrupted gas supply for the next two decades.
The development is being seen by industry observers as a significant step toward reviving the long-dormant steel complex, which has remained inactive since its establishment in 1979 due to several challenges, including the absence of reliable gas infrastructure.
Experts believe the long-term gas supply removes one of the major barriers preventing the commencement of full-scale steel production. They say the move could strengthen Nigeria’s industrial base, encourage investment and support economic diversification.
Analysts also project that the revived steel plant could generate thousands of direct and indirect jobs, reduce Nigeria’s dependence on imported steel, lower production costs for local manufacturers and conserve foreign exchange.
With a guaranteed gas supply now in place, many stakeholders believe the agreement could attract fresh local and foreign investments needed to complete and fully operationalise the steel facility.
The latest development has renewed optimism that Ajaokuta Steel Company may finally begin contributing to Nigeria’s manufacturing sector and broader economic growth after decades of inactivity.
