NASS demands disclosure of agreements in bid to revitalise Ajaokuta steel Complex

The Joint Committee on Steel Development has demanded for the disclosure of agreements entered into concerning the effort o government to revitalise Ajaokuta Steel Complex.

The demand was made by Committee when the Minister of Steel Development, Prince Shuaibu Abubakar Audu, appeared for the 2025 budget defence before the Joint Committee on Steel Development in Abuja, asking him provide full details of all contractual agreements entered into with corporate entities.

During the budget defence 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.