The Nigerian Senate on Tuesday expressed strong disapproval regarding the N4.2 billion allocated in the 2024 budget for personnel costs at Ajaokuta Steel Company Limited, citing concerns over unverifiable workers.
These concerns were raised during an investigative hearing led by a Senate Ad-hoc Committee into allegations of corruption and inefficiency at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company from 2002 to the present.
Deputy Chairman of the Committee, Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central), questioned Sole Administrator Summaila Abdul Akaba about the personnel expenses.
Akpoti-Uduaghan, who frequently visits the site as a local resident interested in the company’s revival, noted that she rarely encounters more than 10 people present despite the substantial budget allocation.
She pointed out that despite the significant expenditure, the company has not produced any steel or operated any mills.
“With N4.2 billion allocated for personnel in 2024, I have often found fewer than ten workers present during my visits,” she said. “Who, exactly, are receiving these salaries?”
Akpoti-Uduaghan highlighted that with N300,000 paid monthly to 14,000 workers, the total would amount to N4.2 billion annually, or N500,000 for 8,400 workers.
“Where are these 14,000 or 8,400 workers?” she questioned.
Senator Osita Ngwu (PDP, Enugu West), a member of the committee, intervened to prevent the Sole Administrator from responding, cautioning against self-indictment since the appropriation was approved by the National Assembly.
In his concluding remarks, Chairman of the Ad-hoc Committee, Senator Adeniyi Adegbonmire (APC, Ondo Central), assured that the Committee would thoroughly review all presentations and submissions from stakeholders for a comprehensive report on Ajaokuta Steel Company.
Key participants in the hearing included representatives from the Ministry of Mines and Steel Development, the Central Bank of Nigeria, the Bureau of Public Enterprises, the Nigerian Society of Engineers, and the Steel and Engineering Union Workers of Nigeria.
