In the 2024 budget, the Senate has raised concerns over the allocation of N4.2bn for personnel costs at the Ajaokuta Steel Company Limited, especially given the questionable status of the workers employed there.
The issue of unverified workers at the non-operational steel company was brought to light during an investigative hearing on allegations of corruption and inefficiency at both the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company spanning from 2002 until the present, conducted by a Senate Ad-hoc committee.
During the hearing, Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), the Deputy Chairman of the Committee, confronted the Steel Company’s Sole Administrator, Summaila Abdul-Akaba, regarding the discrepancy in the number of workers actually present and working, in comparison to the allocation of N4.2bn for personnel costs in 2024.
Expressing her concerns as a local resident eager to see the steel company operational again, she mentioned her frequent unscheduled visits to the plant where she rarely found more than 10 workers on duty.
She criticized the lack of production or any tangible progress despite the substantial annual expenditure on personnel costs by the steel company.
Akpoti-Uduaghan addressed the Sole Administrator, stating, “I, as a concerned resident from the area, deeply interested in the revitalization of the company, have a question for you.
“The budget allocated N4.2bn for personnel costs in 2024, yet my numerous visits to the complex hardly reveal more than 10 workers present. So, who exactly is benefiting from this allocated N4.2bn? If we do the math, paying N300,000 monthly to 14,000 individuals sums up to N4.2bn annually, or N500,000 to 8,400 workers in a year.”
Natasha further inquired, “Where are the 14,000 or 8,400 workers in Ajaokuta that are supposedly being covered by the N4.2bn allocation?”
However, Senator Osita Ngwu (PDP Enugu West), the minority whip of the Senate and a committee member, intervened to prevent the Sole Administrator from responding to Natasha’s questions, cautioning against self-incrimination given that the appropriation had been approved by the National Assembly.
In conclusion, the Chairman of the Ad-hoc Committee, Senator Adeniyi Adegbonmire (APC Ondo Central), assured that the committee would thoroughly investigate the presentations and submissions made by various stakeholders in order to find a resolution for the challenges facing Ajaokuta Steel Company.
Key participants in the investigative hearing included the permanent secretary of the Ministry of Mines and Steel Development, a director from the Central Bank of Nigeria, a director from the Bureau of Public Enterprises, as well as representatives from the Nigerian Society of Engineers and the Steel and Engineering Union Workers of Nigeria, among others.