By Fatima Saka
The National Assembly’s Joint Senate and House of Representatives Committee on Steel Development has summoned the Ministers of Finance, Budget, and National Planning to explain the declining capital budget for the steel sector.
The committee issued a letter demanding their appearance within 24 hours and declared a state of emergency on scrap collection.
The committee emphasized the need to safeguard government infrastructure and enhance steel production, proposing the establishment of scrap collection centers across the six geopolitical zones of the country.
Chairman of the Senate Committee on Steel, Senator Patrick Ndubueze, called for a substantial increase in the 2025 budget following a motion moved by his co-chair, Honourable Zainab Gimba, during a session in Abuja on Wednesday.
Highlighting the critical role of the Ministry of Steel Development in revitalizing Nigeria’s steel sector, the committee raised concerns over the dwindling capital allocation despite the government’s commitment to industrial development.
“For us to understand why the capital budget for the steel sector is decreasing—especially given its importance to this administration and President Bola Tinubu’s commitment to revitalizing the sector—we need to engage all stakeholders,” Senator Ndubueze stated.
“We believe the allocated capital is insufficient. Additionally, given the National Assembly’s decision to declare a state of emergency on scrap collection, this budget will not be adequate to implement the necessary projects. Therefore, I move that we invite the Director-General and the Honourable Minister for Budget and Planning to discuss increasing the Ministry of Steel’s budget, as well as the budgets of 11 other related agencies, to ensure they can meet their mandates.”
The committee urged the Minister of Budget to advocate for increased 2025 budgetary allocations for the steel sector, citing its significance in national development and the urgency of addressing scrap metal collection to prevent further damage to public infrastructure.
Providing a breakdown of the 2025 budget allocation, the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, outlined the ministry’s key objectives, including attracting Foreign Direct Investment (FDI), boosting government revenue, increasing foreign exchange earnings from the steel sector, and completing the revitalization of the Ajaokuta Steel Complex and the National Iron Ore Mining Company (NIOMCO) in Itakpe.
However, the Minister stressed that these goals could not be achieved without legislative support.
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“Given the steel sector’s strategic role in industrialization, job creation, and FDI, it is essential that the ministry receives an increased allocation to fund its ambitious 2025 projects,” Prince Audu stated.
“We initially requested ₦315 billion but were allocated only ₦8.3 billion in capital expenditure a figure far below what is needed to launch key projects and enhance asset valuation for privatization. For the Joint Committee’s consideration, we are seeking an additional ₦33.031 billion in intervention funds for priority projects, particularly in response to the state of emergency on scrap collection centers.”
The committee intervention signals a renewed commitment to revamping Nigeria’s steel industry, which is seen as vital for economic growth, infrastructure development, and job creation.
