Lawmaker representing Kogi Central Senatorial District, Senator Natasha Akpoti-Uduaghan, on Tuesday, moved a motion to investigate alleged corruption and inefficiency at the Ajaokuta Steel Company Limited (ASL) and the National Iron Ore Mining Company (NIOMCO) located in Kogi, respectively.
Senator Akpoti – Uduaghan, in her motion, urged the Senate to investigate the affairs of Ajaokuta Steel and NIOMCO between 2008 to date.
She believes that the investigation should uncover the circumstances that led to the re-concession of NIOMCO, as the initial concession agreement was validly terminated by the Yar’adua administration. The Kogi lawmaker also sought an investigation into the payment of $496m allegedly made to the Chairman, Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 as settlement over ASL contractual disputes. According to her, Ajaokuta Steel and NIOMCO were set up by the Federal Government in the late 70s to establish Nigeria as a leading steel exporter but have been inoperative for decades due to a lack of political will and bureaucratic corruption.
She explained that since 1994, when the Tyazhpromexport (TPE) exited the Ajaokuta Steel on alleged ground that Nigeria did not discharge fully its financial obligation to the TPE, the Ajaokuta Steel was reportedly at 98% completion yet remains inoperative to date.
She revealed that sometime in 2001, Nigeria’s hope to have the Ajaokuta Steel Plant completed and put into operation was rekindled following the signing of the bilateral Agreement between Nigeria and the Russian Federation. This noble idea was unfortunately diminished following the surreptitious concessions of NIOMCO and ASCL in June 2003 to unqualified Solgas Energy Limited, a company she described as lacking both financial and technical expertise as it was uncovered never to be in the business of ore and steel.
She further noted that the concession of ASCL and NIOMCO complexes took place contrary to the recommendation of the House Committee on Steel in 2004.
Following the motion, the Senate resolved to set up an Ad-hoc Committee to investigate the affairs of Ajaokuta Steel Company Limited and the National Ore Mining Company (NIOMCO) in Kogi between 2008 to date.
The Senate also resolved to invite and interface with relevant Ministries, Departments, and Agencies (MDAs), and other critical stakeholders in the steel sector especially those with interest in Ajaokuta Steel Manufacturing Plant and NIOMCO to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2008 to date, urging the Federal Government to review extant policies and laws on steel development in Nigeria with a view to adopting a strategic implementation Plan on Steel Development in Nigeria bearing in mind the importance of steel to Nigeria’s quests for industrialisation and economic self-reliance.
The Senate subsequently set up a committee to investigate the alleged corruption in Ajaokuta Steel Company Limited (ASL) and the National Iron Ore Mining Company (NIOMCO).
Akpoti – Uduaghan making her case on the floor of the senate on Tuesday
