The Senate on Tuesday expressed strong disapproval of the N4.2 billion allocated in the 2024 budget as personnel costs for unverifiable workers at the dormant Ajaokuta Steel Company Limited.
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The Senate ad-hoc committee convened an investigative hearing to address alleged corruption and inefficiency within Ajaokuta Steel Company Limited and National Iron Ore Mining Company from 2002 to 2024.
Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central), Deputy Chairman of the Committee, criticized Sole Administrator Summaila Abdul Akaba for the number of workers purportedly receiving salaries from the N4.2 billion appropriated for personnel costs in the 2024 budget.
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Senator Akpoti-Uduaghan, a local resident eager to see the company’s revival, recounted an unscheduled visit during which she found fewer than 10 people on site.
“Despite the significant sums allocated annually for personnel costs, no steel has been manufactured and no mill rolled,” she lamented.
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Addressing the sole administrator, Senator Akpoti-Uduaghan said, “As an indigene of the area, I am deeply concerned about the state of the company and passionate about its revival. The 2024 budget includes N4.2 billion for personnel costs, yet during my visits, I barely saw 10 people working. Who are the workers receiving monthly salaries from this allocation? Statistically, paying N300,000 per month to 14,000 people for a year equals N4.2 billion, or N500,000 to 8,400 workers per month. Where are these 14,000 or 8,400 workers in Ajaokuta?”
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However, Senator Osita Ngwu (PDP, Enugu West), the Minority Whip and committee member, interrupted before the sole administrator could respond.
Senator Ngwu stated, “Let’s not indict ourselves; the National Assembly approved this appropriation.”
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In his closing remarks, Senator Adeniyi Adegbonmire (APC, Ondo Central), Chairman of the ad-hoc committee, assured that all presentations and submissions from various stakeholders would be thoroughly reviewed for a comprehensive report on Ajaokuta Steel Company to be presented to the Senate.
Key stakeholders present at the hearing included the Permanent Secretary of the Ministry of Mines and Steel Development, a director from the Central Bank of Nigeria (CBN), a director from the Bureau of Public Enterprises (BPE), the Nigerian Society of Engineers, and the Steel and Engineering Workers Union of Nigeria, among others.
