Janet Samuel. Abuja
The Senate has once again expressed disappointment that the Ajaokuta Steel Company Limited (ASCL) in Kogi State, Nigeria, remains non-functional despite being established over four decades ago, with investments totaling billions of dollars.”
At a One-Day investigative hearing on alleged incidences of corruption and inefficiency in Ajaokuta Steel Company Limited (ASCOL) and National Iron Ore Mining Company (NIOMC) and the general state of affairs in the Federal Government owned companies from 2002 to date, organised by the Senate Ad-hoc Committee, it became clear why the companies have not lived up to expectation.
The lawmakers’ attention was drawn to the systemic decay when the Permanent Secretary, Dr. Chris Osaruwanmwen, representing the Minister of Steel Development, delivered a presentation that was deemed lacking in substance and impact, prompting the committee to criticize it as unimpressive and ineffective.
Chairman of the Ad-hoc committee, Senator Adeniyi Ayodele Adegbonmire (SAN) wondered how Ajaokuta will ever work when the Ministry of Steel, which directly supervises Ajaokuta presented only “a 2-page watery memorandum” to the Senate committee saddled with the enormous job.
“How can Ajaokuta work? You have not presented something that will make Ajaokuta work. Tell us the problem and the steps you have taken to make Ajaokuta work. What you presented shows the ministry is not on top of the situation.
The upper chamber was also told that the privatisation and concession of the company was not in the best interest of the country.
The concession agreement between the Federal Government and GINL provided for GINL to import capital into the company but didn’t bring a dime.
To make matters worse, Nigeria paid a whooping sum of $496 million to Global Infrastructure Nigeria Limited (GINL), the company Ajaokuta was concessioned to as out of court settlement.
This infuriated the Senate investigative panel when it was clear that GINL did not bring in a dime as investment.
The Central Bank of Nigeria (CBN) represented by Hamisu Abdullahi, Director Banking Services presented evidence of payment of $496 million to GINL with a mandate from office of the Accountant General of the Federation.
He said the source of the money was FGN independent revenue account from where$250 million in settlement agreement was paid in September 2022 and the balance paid from FGN Bonus Account in instalments $49.32 million.
Mr. Abdullahi confirmed that there was no capital importation by GINL.
Speaking, the Sole Administrator of Ajaokuta, Engr. Sumaila Abdul Akaba who described ASCOL as a strategic company said the state of the plant is still intact.
Engr. Akaba told the committee that the line plant, which has been completed and will be ready in 6 months can meet the line need of the 36 states.
The Sole Administrator debunked the believe in many quarters that ASCOL is obsolete by saying that all the steel companies in India and China are built by this Russian technology like Ajaokuta.
Engr. Akaba also justified the retention of staff of the steel company and the N4.2 billion in the 2024 budget for salaries which Senator Natasha Akpoti-Uduaghan of Kogi Central had earlier criticized.
He said those staff who are maintaining the plant are the only reason we still have what we call Ajaokuta today, adding that if you buy a brand new car and park it outside for a year without care, you won’t be able to drive it when you need it.
Stakeholders at the investigative hearing include; Federal Ministry of Finance, Nigeria Society of Engineers, Steel and Engineering Workers Union of Nigeria and Bureau of Public Enterprises among others.
