By Our Reporter
ABUJA (PRECISE POST) – The Senate Committee on Steel Development has demanded stronger accountability, transparency, and a concrete strategic plan for the revival of the Ajaokuta Steel Complex, as it scrutinized the Ministry of Steel Development’s 2024 and 2025 budget performance and reviewed its 2026 proposal.
At a tense budget defence session, lawmakers voiced concern over weak capital releases, inconsistent implementation timelines, and the continued absence of visible progress on Nigeria’s flagship steel assets.
2024 Budget: Capital Releases Lag Behind
Under the 2024 Appropriation Act, the Ministry of Steel Development and its agencies received ₦24.143 billion.
For the ministry’s headquarters, allocations included ₦1.66 billion for personnel, ₦383 million for overhead, and ₦11.06 billion for capital projects.
As of December 31, 2025, overall releases stood at 56.5 percent. While personnel and overhead were fully funded, only 48.4 percent of capital allocations were released.
Committee members questioned the slow pace of capital implementation and demanded detailed clarification on expenditure timelines and project delivery.
2025 Budget: Zero Capital Funding
The situation worsened in 2025. Although personnel releases reached 88.6 percent and overhead funds were partially disbursed, capital releases stood at zero percent.
Lawmakers described the complete absence of capital funding as a major setback to ongoing projects and the broader revitalization of the steel sector, warning that without capital investment, policy commitments would remain on paper.
2026 Proposal: Heavy on Carryovers
For 2026, the ministry proposed ₦21.52 billion, with roughly 70 percent earmarked for carryover obligations.
The Committee insisted that the new budget must prioritize completion of ongoing projects, measurable outputs, value for money, institutional strengthening, strategic private sector participation, and alignment with national development goals.
Lawmakers also warned that the 2026 proposal would be rigorously cross-checked against the ministry’s 2025 performance records.
Ajaokuta: Strategy in Flux
Much of the session focused on the long-delayed revival of the Ajaokuta Steel Complex.
The Minister revealed that a Memorandum of Understanding signed in September 2024 with a Russian consortium failed to progress due to funding challenges linked to the Russia–Ukraine conflict. He estimated that revamping Ajaokuta would cost between $1.5 billion and $5 billion — far beyond current budgetary capacity.
Negotiations have since shifted to Chinese investors, whom the Minister described as possessing stronger financing capacity, technical expertise, and faster execution timelines. Discussions, he said, are at an advanced stage pending approvals.
However, senators raised red flags over limited access to signed MoUs, insufficient due diligence on previous arrangements, unclear timelines, and what they described as over-reliance on foreign investors.
Some lawmakers proposed alternative financing models, including raising funds through the Debt Management Office, activating individual production lines independently, and pursuing structured public-private partnerships with domestic industrial investors.
The Committee stressed that Ajaokuta’s revival must not amount to blanket privatization but should follow a phased, strategic framework that safeguards national interest.
Oversight Hurdles and NIOMCO Debate
The Committee also expressed frustration over its inability to conduct oversight visits to Ajaokuta and the National Iron Ore Mining Company (NIOMCO), citing security concerns. Members directed that arrangements be made to facilitate visits before the end of the second quarter.
Debate further emerged over whether NIOMCO should be transferred to the Ministry of Solid Minerals to access exploration funding. The Minister opposed the move, arguing that NIOMCO and Ajaokuta are integral parts of the same steel value chain and should remain under unified supervision.
Legislative Gaps
Lawmakers also queried the status of the Metallurgical Industry Bill, noting that the version referenced by the ministry originated from the Ninth Assembly and has lapsed. The Committee urged the ministry to urgently submit an updated bill to the current Assembly.
“Accountability Is Non-Negotiable”
In closing, the Committee pledged continued collaboration but made clear that performance, transparency, and accountability would remain non-negotiable.
Senators reaffirmed their determination to ensure that Nigeria’s steel sector fulfills its strategic role in driving industrialization, job creation, infrastructure development, and economic diversification — warning that without decisive action, the long-promised rebirth of Ajaokuta could remain elusive.
