The Senate ad hoc committee investigating corruption and inefficiency at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company has raised serious concerns about the company’s 2024 budget allocation.
During a recent hearing, the committee expressed alarm over the allocation of ₦4.2 billion designated for personnel costs despite the company reportedly employing fewer than ten workers.
Key stakeholders, including representatives from the Ministry of Mines and Steel Development, the Central Bank of Nigeria, the Bureau of Public Enterprises (BPE), the Nigerian Society of Engineers, and the Steel and Engineering Union Workers of Nigeria, were present at the hearing.
Senator Natasha Akpoti-Uduaghan of Kogi Central, who is leading the probe, questioned the justification for the ₦4.2 billion budgeted for personnel. She pointed out that despite multiple visits to the site revealing a minimal workforce, no steel production or mill operations have been reported.
Akpoti-Uduaghan, emphasizing her personal investment in the company’s revival as a local resident, asked Summaila Abdul Akaba, the Steel Company’s sole administrator, to explain how this substantial budget allocation is being used.
She noted, “₦4.2 billion was allocated for personnel in 2024, but I observed fewer than ten people working during my visits. Where are the workers who are supposedly being paid from this amount?”
She further explained that with ₦4.2 billion, theoretically, if N300,000 were paid monthly to 14,000 workers, it would cover the budget, or N500,000 to 8,400 workers per month.
Senator Osita Ngwu, a committee member, declined to allow a response from Akaba, suggesting that the National Assembly’s approval of the budget should not be questioned.
In his closing remarks, Senator Adeniyi Adegbonmire, Chairman of the ad hoc Committee, assured that the committee would thoroughly review all evidence and presentations to address the issues surrounding the Ajaokuta Steel Company and provide a comprehensive report.
News Editor