The Senate Ad-hoc Committee discovered a number of concerning problems during a one-day investigative hearing that was centered on claims of corruption and inefficiency at ASCOL and the National Iron Ore Mining Company (NAICOM), as well as the general performance of federal government-owned businesses since 2002.
The presentation delivered by the Minister of Steel Development, who was accompanied by Permanent Secretary Dr. Chris Osaruwanmwen, shocked the lawmakers and was criticized as "insufficient."
The committee's chairman, Senator Adeniyi Ayodele Adegbonmire (SAN), questioned how Ajaokuta could operate after the responsible ministry supplied Just a two-page memo, nothing special. "What you offered is insufficient to tackle Ajaokuta's problems. He said, "Explain the problems and the steps you took to fix them. Your presentation shows a lack of oversight."
The committee also discovered that Nigeria was not best served by the company's concession and privatization agreements. The company still needed to make investments even though Global Infrastructure Nigeria Limited (GINL), under the terms of the concession, was supposed to provide finance.
Nigeria controversially paid GINL $496 million as part of an out-of-court settlement, despite GINL contributing very little money, which only served to exacerbate the aggravation. Senate senators were outraged by this disclosure, which brought attention to the financial malfeasance at play.
Director of Banking Services of the Central Bank of Nigeria, Hamisu Abdullahi (CBN), which verified the payment of $496 million to GINL, explained that the remaining amount was paid out in installments, with $250 million coming from the Federal Government's independent revenue account as part of the settlement in September 2022.
The only administrator of Ajaokuta, Engr. Sumaila Abdul Akaba, described ASCOL as an essential organization and said the plant is still in good operating order. He said that all 36 states' needs for lime could be met by the finished line facility, which would be available in six months.
In response to criticism that ASCOL is antiquated, Akaba pointed out that steel factories in China and India use the same Russian technology as was used in Ajaokuta. He said that keeping employees at the steel industry was essential and that the 2024 budget should include N4.2 billion for compensation
This was criticized by Senator Natasha Akpoti-Uduaghan. He compared it to ignoring a brand-new car left unattended for a year to highlight how important the maintenance team is to maintaining Ajaokuta's operational potential.
The Nigeria Society of Engineers, the Steel and Engineering Workers Union of Nigeria, and the Federal Ministry of Finance were among the parties represented during the investigation hearing.
The Nigeria Society of Engineers, the Steel and Engineering Workers Union of Nigeria, and the Federal Ministry of Finance were among the parties represented during the investigation hearing.
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