On Tuesday, there was a small drama when a Senate committee rejected the Ministry of Steel Development’s letter about the Ajaokuta Steel Company, calling it “watery.”
Ajaokuta Steel Company Limited (ASCOL) and National Iron Ore Mining Company (NIOMCO) and the general state of affairs in the Federal Government owned companies from 2002 till date were the subjects of the investigative public hearing organized by the Senate Ad-hoc Committee.
The presentation delivered by the Permanent Secretary, Dr. Chris Osaruwanmwen, on behalf of the Minister of Steel Development, Mustapha Audu Abubakar, was characterized as “watery” and later turned down.
The Ministry of Steel, which oversees Ajaokuta directly, submitted just “a 2-page watery memorandum” to the Senate committee tasked with the massive task, leaving Senator Adeniyi Ayodele Adegbonmire (SAN), the chairman of the Ad-hoc committee, questioning how Ajaokuta will ever function.
“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,” he said.
Additionally, the Upper Chamber was informed that the company’s concession and privatization were not in the nation’s best interests.
The Federal Government and GINL entered into a concession arrangement that allowed GINL to bring in capital without contributing any money.
Worse, as part of an out-of-court settlement, Nigeria was allegedly supposed to have paid $496 million to Global Infrastructure Nigeria Limited (GINL), the entity to which Ajaokuta was granted concessions.
The Senate investigating panel lost its cool when it was revealed that GINL had not contributed any money at all.
The Office of the Accountant General of the Federation has mandated the Central Bank of Nigeria (CBN) to pay $496 million to GINL. The CBN, represented by Director Banking Services Hamisu Abdullahi, produced documentation of this payment.
According to him, the funds came from the FGN independent revenue account, from which a settlement agreement of $250 million was paid in September 2022. The remaining $49.32 million was paid in installments from the FGN Bonus Account.
Abdullahi attested to the fact that GINL had not brought in any capital. The facility is still in operational condition, according to Engineer Sumaila Abdul Akaba, the Sole Administrator of Ajaokuta, who called ASCOL an important firm.
Akaba informed the committee that the 36 states’ needs for lime could be satisfied by the completed line facility, which will be operational in six months.
The Sole Administrator refuted the widespread idea that ASCOL is no longer relevant by pointing out that Russian technologies, such as Ajaokuta, are the foundation of all Chinese and Indian steel businesses.
Additionally, Akaba defended the steel company’s decision to keep its employees on and the N4.2 billion allocated for pay in the 2024 budget—a move that was criticized by Senator Natasha Akpoti-Uduaghan of Kogi Central.
The only reason Ajaokuta exists today, he claimed, is because of the workers who maintain the facility. He also warned that you won’t be able to drive a brand-new automobile if you buy it and leave it outside for a year without any maintenance.
The Nigeria Society of Engineers, the Steel and Engineering Workers Union of Nigeria, the Federal Ministry of Finance, the Bureau of Public Enterprises, and other organizations were present at the investigation hearing.
