The Joint Senate Committee on Steel Development has raised serious concerns over the concessioning process of Ajaokuta Steel Company, questioned the Minister of Steel Development, Shuaibu Abubakar Audu, during a budget defense session.
Co-chaired by Senator Patrick Ndubueze, the Committee demanded detailed explanations regarding the contractual agreements with NOVASTAL, a private firm, and the rationale for opting for a tripartite agreement instead of a government-to-government arrangement.
The Committee expressed skepticism about the 4 billion naira allocated in the 2024 budget for the concessioning process and sought clarity on the utilisation of the funds, as the process remained incomplete.
A major point of contention was the 2 billion naira earmarked for a technical audit of the steel company.
The Committee questioned the basis for this figure and the technical competence of the auditing firm, it emphasised that only the original builders possessed the necessary expertise for a credible audit.
The Committee also scrutinized the Memorandum of Understanding (MoU) signed on behalf of the Nigerian government, seeking details on the percentage allocated to host communities.
They also criticised the Ministry for using terms like revitalisation, privatisation, and concessioning interchangeably, calling it a misleading approach given Ajaokuta Steel’s current non-operational status.
Concerns were also raised about the Ministry’s relationship with other players in the steel sector, such as ASCOM, the failure to use the 1.6 billion naira allocated for technical support in the sector, and the lack of progress in establishing scrap collection centers across the six geopolitical zones, despite the dangers posed by indiscriminate scrap metal dealings.
Due to the unsatisfactory responses provided by Minister Audu, the Committee adjourned the session and rescheduled it for Wednesday, January 22, 2024, at 11:00 am, expecting the Minister to return with the necessary documentation to address the raised issues.
