T he Senate has expressed serious concerns over the N4.2 billion allocated in the 2024 budget as personnel costs for unverifiable workers at the Ajaokuta Steel Company Limited. This issue came to light during an investigative hearing by an ad-hoc committee examining alleged corruption and inefficiency at the Ajaokuta Steel Company and the National Iron Ore Mining Company from 2002 to date.
During the hearing, Deputy Chairman of the Committee, Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), confronted the Sole Administrator of the Steel Company, Summaila Abdul-Akaba, regarding the number of workers being paid from the N4.2 billion allocated for personnel costs in the 2024 budget.
Akpoti-Uduaghan, a local of the area who is keen on seeing the steel company revitalized, mentioned that during her frequent unscheduled visits to the plant, she rarely saw more than 10 people working.
She lamented that despite the significant amount of money allocated annually for personnel costs, no steel has been manufactured and no mills have rolled at the plant.
“The sole administrator of Ajaokuta Steel Company, I have a good question for you as an indigene from the area, who is very worried about the state of the company and passionate for its revival," Akpoti-Uduaghan said. "The sum of N4.2 billion was appropriated for personnel cost in 2024, but from several visits I’ve made to the complex, hardly were 10 people sighted to be around or doing anything."
Akpoti-Uduaghan further questioned, “Where are the 14,000 or 8,400 workers in Ajaokuta that the appropriated N4.2 billion is being spent on? Statistically, if N300,000 is paid monthly to 14,000 people per month for a year, you get N4.2 billion or N500,000 to 8,400 workers per month in a year.”
In an effort to avoid self-incrimination, Senator Osita Ngwu (PDP Enugu West), the minority whip of the Senate and a committee member, prevented the sole administrator from responding to Akpoti-Uduaghan's question. Ngwu interjected, stating, “Please don’t let us indict ourselves because the said appropriation was approved by the National Assembly.”
In his closing remarks at the investigative hearing, the Chairman of the Ad-hoc Committee, Senator Adeniyi Adegbonmire (APC Ondo Central), assured that the presentations and submissions made by various stakeholders would be thoroughly reviewed by the committee to find a solution for the Ajaokuta Steel Company.
Key stakeholders at 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, the Nigerian Society of Engineers, and the Steel and Engineering Workers Union of Nigeria.
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