Senate To Probe Ajaokuta Steel Over $496m Payment

Nigerian Senate, on Tuesday, declared its plans to launch an investigation into the activities of the Ajaokuta Steel Company Limited and the National Ore Mining Company in Kogi State from 2008 till date.

Gatekeepers News reports that the Senate aims to unravel the mystery behind the alleged payment of $496m to the Chairman of Global Infrastructure Holdings Limited, Pramod Mittal, by the Federal Government in September 2022 as a settlement over contractual disputes.

Furthermore, the Senate will also investigate the circumstances surrounding the re-concession of NIOMCO, despite the initial concession agreement being terminated by the Yar’adua administration with a positive review by the International Chamber of Commerce, London.

These resolutions were made following a motion sponsored by Senator Natasha Akpoti-Uduaghan, who expressed concerns that the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company were established in the late 70s by the Federal Government with the potential to put Nigeria on the path of technological and industrial advancement and establish the country as one of the leading exporters of steel products in the world.

The Senator lamented that despite their establishment, the Ajaokuta Steel Mill and NIOMCO have been unable to produce steel despite efforts by successive administrations, due to a lack of earnest political will and bureaucratic corruption.

According to her, Nigeria spends approximately $3.3bn annually on steel imports.

The Senate hopes that the investigation will provide answers to the issues surrounding these companies, and ultimately lead to the development of the Nigerian steel industry.

She said, “This has further worsened the inefficiency of the moribund company with the recently queried 33bn naira electricity debt incurred by Presidential villa.”

The Senate after debate on the motion, consequently set up a committee to be chaired by Senator Adeniyi Ayodele Adegbonmire ( SAN) with senators Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South) Joel Onowakpa (Delta), Onyesoh Allwell Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Sen Patrick Chukwuba Ndubueze (Imo North), Tokunbo Abiru (Lagos East) and Osita Ngwu (Enugu West) as members.

While the committee is to report back to the Senate in two weeks, they are also to interface with relevant Ministries, Departments and Agencies and other critical stakeholders in the steel sector especially those with interest in Ajaokuta Steel Manufacturing Plant and (all mining company NIOMCO to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2018 to date.