The Nigerian government has secured the support of Russia in the construction of 1,400km rail track from Lagos to the South-South city of Calabar, a deal which will put China on its toes.
Nigeria also got a nod of Russia’s resumption of work for the abandoned multi-billion dollar Ajaokuta Steel Company which is reported to be 98 percent completed in 1994 before it was abandoned.
The steel company was incorporated in 1979, occupying 24,000 square kilometres and abandoned after it completed 40 of the 43 plants.
The return of Russia to the steel company is on a government-to-government basis, to complete and launch the abandoned mill.
Nigeria and Russia will work together to improve the efficiency of Nigeria’s oil sector, which will see to the rehabilitation of the oil refineries through a joint venture between the Nigerian National Petroleum Corporation (NNPC) and Russia-based Lukoil.
The NNPC and Lukoil will work towards prospection of oil in deep offshore and both countries agreed to revive and solidify the venture between the NNPC and Russia’s gas giant Gazprom for the development of Nigeria’s enormous gas potential and infrastructure.
Malam Garba Shehu, the Senior Special Assistant to the President on Media and Publicity, confirmed the deals in Abuja that were reached at a meeting between President Muhammadu Buhari and the Russian President Vladimir Putin.
The bilateral meeting started on Wednesday on the sidelines of ongoing Russia-Africa Summit, in Sochi, Russia.
China has until recently, the only country involved in rail construction In Nigeria, but the coming of Russia could engender competition and enhance quality.
Mr. Oleg Belozerov, General Director and Chairman of the Board of Russian Railways and Mr. Chibuike Amaechi, Nigeria’s Minister of Transportation signed the memorandum of understanding covering many railway areas in Sochi.
According to the agreement, Russia is to enter into the Nigerian railway market through the Eastern Corridor and the Port Harcourt- Maiduguri line.
This is considered very significant as Russia has highly developed railway technical capacity.
The parties have agreed to establish long-term cooperation. In particular, the memorandum indicates that Nigeria is interested in restoring existing railways and rolling stock, expanding the network of Nigerian railways through the construction of new railway lines.
The document also states that the parties will seek to expand cooperation for the development of the railway industry and the improvement of railway equipment of the Federal Republic of Nigeria.
Russian Railways will determine the extent of its participation in the proposed projects in Nigeria, in particular the Lagos-Calabar coastal railway project and Port Harcourt – Maiduguri railway project, taking into account its technical and personnel resources.
In addition, Russian Railways will offer the directions of development of railway transport systems through the design, construction, management and maintenance of railway infrastructure in Nigeria and the introduction of other modernisation solutions that may be proposed to Nigeria.
The memorandum also allows the parties to initiate other areas of cooperation.
President Buhari has agreed to renew Nigeria-Russia Military Technical Agreement that had lapsed within a short time.
He said: “I have directed the Minister of Defence to work with the Ministry of Justice to conclude this matter within the shortest possible time.”
This military cooperation agreement is expected to give impetus to further cooperation in direct procurement of military hardware on a government-to-government basis at a lower cost as well as training of military personnel and modernization of armed forces.
Both countries also discussed the advancement of ongoing project for the establishment of a nuclear power plant in Nigeria as implementation of the project should be the commencement of construction of a power plant.
Buhari also directed the Ministry of Justice to submit a comprehensive report on the UC Russel (the Russian owners of the plant) matter concerning the Aluminum Smelter Company of Nigeria, ALSCON, Ikot-Abasi, Akwa-Ibom State.
“I want to assure you that the aim of our reforms is to ensure such investments are concluded and actualised in a professional and painless manner.”
Aside agreeing on partnership in education and agriculture sectors, Nigeria also sought the assistance of Russia in Wheat production.
Buhari also suggested the holding of the fifth Joint Commission meeting to review and ratify all the agreements (about 40) contained in the Intergovernmental Nigeria-Russia Joint Commission on Economic, Scientific and Technical Cooperation Protocol of November 11, 2016.
He also sought the assistance of Russia for Nigeria to secure the permanent seat and also reforms in the United Nations Security Council.
Putin promised that Russia would approve scholarships to Nigerians as well as ensure that Nigeria improves in its rating as wheat producer and stressed: “We can do a lot together.”
He also advised Nigeria to key into Russia’s potassium resources to boost fertiliser production and reported that his country was in geological prospection of Nigeria’s solid minerals.
Putin also assured Nigeria of the determination of Russia to secure and stop the incidents of piracy in the Gulf of Guinea as well as assist in curtailing acts of terrorism in Nigeria.
MM/GIK/APA