..…. Commends Prince Audu milestones achieved last year especially on Mou of Ajaokuta Steel Plant
By Fatima Saka
The Senate and House of Representative Joint Committee on Steel Development has requested that the Minister of Steel Development, Prince Shuaibu Abubakar Audu, provide full details of all contractual agreements entered into with corporate entities for the revitalization of Ajaokuta Steel Company, a critical component of Nigeria’s industrialization agenda.
The committee commended the minister for the milestones achieved last year, particularly the successful signing of an MOU with TPE. They also emphasized that regional leaders play a crucial role, especially in revitalizing the moribund steel plant.
During the budget defense session on Friday, Co-Chairman Senator Patrick Ndubueze and Hon. Zainab Gimba of the House of Representatives Committee on Steel Development reviewed documents presented by the minister. One key concern raised was why a tripartite agreement was signed with a private company (NOVASTAL) instead of a government-to-government arrangement.
The committee also questioned the allocation of ₦4 billion in the 2024 budget for the concessions of Ajaokuta Steel. If the process has not been successfully completed, the committee demanded to know how the funds have been utilized.
Further scrutiny was placed on the ₦2 billion earmarked for a technical audit of Ajaokuta Steel. Lawmakers inquired how this amount was determined and raised doubts about the technical competence of the selected firm, emphasizing that only the original builders of the steel plant possess the expertise required for a proper audit.
Additionally, the committee sought clarity on the Memorandum of Understanding (MoU) signed on behalf of the Nigerian government. Members demanded to know what percentage of benefits was allocated to host communities and external stakeholders. They also criticized the interchangeable use of the terms “revitalization,” “privatization,” and “concession,” arguing that such terminology could be misleading, given that Ajaokuta Steel remains non-operational.
The committee also examined the role of private players in the steel sector, particularly the ministry’s engagement with ASCOM, and questioned why Ajaokuta Steel is still inactive despite these collaborations.
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Concerns were also raised over the failure to establish scrap metal collection hubs in all six geopolitical zones, as previously planned. Given the dangers posed by illegal and indiscriminate scrap metal trading, the committee called for an emergency response to regulate metal collection nationwide.
Earlier, during the budget defense session, the minister updated the Committee on steel development, highlighting the signing of a Memorandum of Understanding a historic milestone in the privatization of the Ajaokuta Steel Plant and the National Iron Ore Mining Project in Itape. This agreement was reached with the original builders of the plant, MESA, TPE, and their partners in Moscow, Russia.
“We have also completed the selection process for a technical audit firm, which, importantly, includes the local partners of the MOU counterparts from Russia. The current situation is that the ministry and the federal government do not have the necessary funds to invest in Ajaokuta Steel Plant.”
However, the committee suspended the session and adjourned proceedings until Wednesday, January 22, 2024, at 11:00 AM, instructing the minister to return with all relevant documents.
