By Gadia Mercy
The House of Representatives has approved N21.52bn for the Ministry of Steel Development and its agencies in the 2026 fiscal year, while declaring an emergency over the deteriorating state of the Itakpe Iron Ore Mining Company and Ajaokuta Steel Company Limited.
The resolution followed a budget defence session on Thursday, during which lawmakers described conditions at both facilities as urgent and unacceptable.
Chairman of the House Committee on Steel Development, Hon. Zainab Gimba, announced the committee’s position after deliberations with the Minister of Steel Development, Shuaibu Audu, stressing that the assets were too strategic to be allowed to fail.
For 2026, the Executive proposed an aggregate allocation of N21.52bn covering personnel, overhead and capital expenditure for the ministry’s headquarters and its agencies.
A breakdown shows that the ministry’s headquarters is allocated N5.4bn; the Raw Materials Research and Development Council, N2.66bn; the National Metallurgical Development Centre, N1.83bn; the Metallurgical Training Institute, N1.03bn; and the National Steel Council, N8m.
At the headquarters level, personnel costs account for about 10 per cent of total expenditure, overhead approximately 17 per cent, while capital expenditure takes the largest share at 73 per cent, amounting to about N4.1bn.
The minister noted that about 70 per cent of the 2025 capital allocation would be carried over into the 2026 budget cycle in line with a presidential directive transmitted through the National Assembly.
The committee also considered and passed the ministry’s 2025 budget performance report earlier presented at N8.94bn. The 2025 appropriation comprised N2.49bn for personnel costs (28 per cent), N549.4m for overhead (six per cent) and N5.88bn for capital expenditure (66 per cent).
However, Audu disclosed that only N2.53bn representing 28.3 per cent of the total 2025 appropriation had been released so far. While 88.6 per cent of personnel allocation and 58.1 per cent of overhead had been disbursed, no funds had been released for capital projects.
Lawmakers expressed concern over the zero capital release, warning that the ministry’s core mandate of revitalising Ajaokuta and the National Iron Ore Mining Company could be undermined without adequate funding.
The committee also raised alarm over illegal mining activities and vandalism at Itakpe, alleging that illegal miners had taken over parts of the facility in search of gold deposits.
“This is a national asset into which the Federal Government has invested heavily over the years. We cannot continue to watch it deteriorate,” Gimba said, calling for immediate security reinforcement and a comprehensive proposal to safeguard the facility.
The minister acknowledged the security challenges, including scrap metal theft and illegal mining, and said the ministry was working on a regulatory framework to sanitise the scrap metal sector and curb vandalism.
On the revival of Ajaokuta, Audu said the Federal Government was pursuing private sector funding following presidential approval, noting that the government lacked the resources to finance the project directly.
He explained that a Memorandum of Understanding signed in September 2024 with a Russian entity had encountered setbacks due to sanctions arising from the Russia-Ukraine war, prompting a strategic shift towards potential Chinese investors.
“We are working assiduously to secure a credible technical and financial partner. China, being the largest steel producer globally, has the capacity and technical depth to support the revival,” he said.
On Nigeria’s steel demand, the minister disclosed that local production currently stands between one and two million metric tonnes annually, against an estimated national demand of between seven and 10 million metric tonnes — leaving a supply gap that necessitates imports valued at about $4bn yearly.
However, no definitive timeline was provided for the full revival of either facility.
The committee further insisted that future Memoranda of Understanding be shared with the National Assembly at inception to strengthen oversight and transparency.
In her closing remarks, the chairman of the committee said the committee would continue to work with the ministry to ensure effective implementation of the approved budgets and urgent intervention at Itakpe and Ajaokuta.
“We are passing these budgets in the national interest, but we are also declaring that the situation at Itakpe and Ajaokuta requires urgent, coordinated action. These assets are too strategic to fail,” she said.