By Mercy Adi
The Joint Committee on Steel Development has demanded that the Honorable Minister of Steel Development, Prince Shuaibu Abubakar Audu, provide detailed information on all contractual agreements related to the revitalization of the Ajaokuta Steel Company. This demand was made during a budget defense session, where the committee sought clarification on several issues, including a tripartite agreement with NOVASTAL, a private company, instead of a government-to-government arrangement .
The committee also questioned the utilization of the ₦4 billion approved in the 2024 budget for the concessioning process of Ajaokuta Steel Company, as well as the ₦2 billion allocated for a technical audit. They expressed concerns about the technical competence of the firm conducting the audit, noting that only the original builders of the steel company possess the necessary expertise .
Furthermore, the committee asked about the Memorandum of Understanding (MOU) signed on behalf of the Nigerian government, specifically regarding the percentage set aside for host communities and externalities. They criticized the interchangeable use of terms like “revitalization,” “privatization,” and “concession,” saying “it is fraudulent to use such when the status of Ajaokuta Steel remains comatose”.
Other issues raised by the committee included the relationship between the Ministry and ASCOM, the non-establishment of scrap collection centers, and the dangers posed by indiscriminate scrap metal dealing. The committee was not satisfied with the minister’s responses and adjourned the session until Wednesday, January 22, 2025, expecting the minister to provide relevant doc
uments.