The Federal Government has proposed to spend N6.04 billion on personnel costs for Ajaokuta Steel Company Limited in the 2026 fiscal year, even though the steel complex has remained non-operational more than four decades after it was conceived.
Data from the 2026 Appropriation Bill shows that the company was allocated a total of N6.69 billion for the year, with personnel expenses alone accounting for about 90.4% of the entire provision.
The structure of the allocation reinforces Ajaokuta’s long-standing role as a non-producing public enterprise sustained largely by salary payments rather than industrial activity.
Report showed that of the N6.04 billion earmarked for personnel, N4.79 billion is for salaries and wages, while N1.25 billion is set aside for allowances and statutory social contributions.
These include N479.42 million for employer pension contributions, N239.71 million for NHIS payments and N59.82 million for employees’ compensation insurance. Regular allowances alone amount to N468.9 million.
An examination of recent budget trends shows that the 2026 figures represent continuity rather than reform. In 2024, personnel costs at Ajaokuta stood at N4.29 billion.
This jumped to N6.21 billion in 2025, representing a 44.8% increase despite the absence of production. The proposed N6.04 billion for 2026 reflects only a marginal 2.7% reduction from the previous year.
While the slight decline may appear like restraint on paper, it does not alter the underlying structure of spending.
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