Senator Natasha Akpoti-Uduaghan, representing Kogi Central senatorial district, took a significant step on Tuesday by moving a motion in the Senate to investigate suspected corruption and inefficiency at the Ajaokuta Steel Company Limited (ASL) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
In her motion, Senator Natasha urged the Senate to delve into the affairs of both Ajaokuta Steel and NIOMCO, spanning the period from 2008 to February 2024.
Natasha expressed optimism that the investigation would shed light on the circumstances surrounding the re-concession of NIOMCO, especially considering that the initial concession agreement was terminated during the Umaru Yar’Adua administration, as highlighted by Arogbonlo Israel, the Chief Press Secretary to Senator Akpoti-Uduaghan, in a statement issued on Tuesday.
Additionally, Senator Natasha called for an inquiry into the reported payment of $496 million to the Chairman of Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022, purportedly as a settlement for contractual disputes concerning ASL.
Senator Natasha emphasized the historical significance of Ajaokuta Steel and NIOMCO, which were established by the Federal Government in the late 1970s to position Nigeria as a major steel exporter.
However, she lamented that bureaucratic corruption and a lack of political will have rendered both entities inactive for decades.
Highlighting the stagnation of Ajaokuta Steel despite being reportedly near completion since 1994, Senator Natasha recounted Nigeria’s renewed hope for its operationalization following a bilateral agreement signed with the Russian Federation in 2001.
However, Natasha noted with dismay the surreptitious concession of NIOMCO and ASCL in June 2003 to Solgas Energy Limited, a company she criticized for lacking the requisite financial and technical expertise.
Senator Natasha underscored that the concession of ASCL and NIOMCO ran contrary to the recommendations of the House Committee on Steel in 2004. Her motion seeks to address these lingering issues and bring transparency to the operations of Ajaokuta Steel and NIOMCO, crucial assets in Nigeria’s industrial development.
Natasha said, “After reviewing the Inuwa Magaji Administrative Panel of Inquiry Report on the late President Umaru Yar’Adua, the Federal Executive Council unanimously terminated the Concession Agreement on April 2, 2008.
“The termination was due to the operations of ASCL, NIOMCO, and Delta steel mills, as well as breach of agreement and unwholesome practices. Additionally, the Concession Agreement was found to be unpatriotically skewed in favour of GINL.
“The House of Representatives had conducted an investigation into the Iron and Steel Sector in 2018 with far-reaching resolutions aimed at resuscitating the ASCL and ANIOMCO steel mills.
“However, the Federal Government either ignored these resolutions or has not implemented them yet. Many steel-producing countries are disturbed by the $253 million organized economic crimes in India.
“Additionally, GSHL’s Pramod Mittal is notorious for engaging in questionable business activities such as embezzlement and asset-stripping in countries like Bulgaria, the Philippines, Libya, Bosnia, Zimbabwe, Montenegro, Serbia, and many more.
“In Bosnia, Pramod Mittal, who is associated with GSHL, was arrested and charged with organized crime. Additionally, GSHL’s management staff were jailed for economic crimes.
“However, it seems that Nigeria has fallen victim to Pramod’s sharp contract fraud yet again, in relation to the payout of $496m in 2022. This is not the first time, as Nigeria previously conceded NIOMCO to the same GINL in August 2016. Unfortunately, these fraudulent activities are facilitated by unpatriotic Nigerians who hold trusted government positions.
“It is disheartening to note that Nigeria is currently spending approximately $3.3 billion annually on importing steel despite having abundant natural ore resources. This is because the Ajaokuta and Delta steel plants, which could have served as valuable assets to the nation, are in a state of disrepair. These plants have become channels for the misappropriation of public funds, which is a huge burden on Nigerian taxpayers.”
“I am concerned about the management structure at the Ajaokuta Steel Complex. It appears that a Sole Administrator has been making all decisions regarding the company’s affairs for the past 12 years without any input from others. This has led to increased inefficiencies at the company. Recently, President Tinubu has questioned the N33 billion electricity debt,” she said.
In response to the motion, the Senate has decided to establish an ad hoc committee tasked with investigating the operations of Ajaokuta Steel Company Limited and the National Iron Ore Mining Company (NIOMCO) in Kogi State from 2008 to 2024.
Furthermore, the Senate has resolved to summon and engage with pertinent Ministries, Departments, Agencies (MDAs), and other key stakeholders in the steel sector, particularly those involved with the Ajaokuta Steel Manufacturing Plant and NIOMCO, to gather pertinent information.
The objective is to compile a comprehensive report for the Senate regarding the management of these two facilities from 2008 to the present.
The Senate has called upon the Federal Government to reassess existing policies and legislation concerning steel development in Nigeria. This move aims to formulate a strategic implementation plan for steel development in Nigeria, considering the pivotal role of steel in the nation’s aspirations for industrialization and economic self-sufficiency.
Consequently, the Senate has established a committee specifically tasked with investigating allegations of corruption within Ajaokuta Steel Company Limited (ASL) and the National Iron Ore Mining Company (NIOMCO).