Joint Committee on Steel Development has asked the Hon. Minister of Steel development Prince Shuaibu Abubakar Audu to provide them with details of all the contractual agreements entered into with any corporate entity, in the process of revitilising Ajaokuta Steel Company which is a crital component for the industrialization of Nigeria.
The Committee jointly chaired by Senator Patriick Ndubueze on Friday during the budget defence session with Prince Audu, sought to know why a tripartite agreement was entered into with an individual company(NOVASTAL) as against government to government.
In the 2024 budget, the sum of 4 billion naira was approved for the concessioning process of the Ajaokuta Steel Company and if the process has not scaled through, how had the money been utiliized.
The Committee asked how the sum of 2 billion was arrived at as the amount to be used in carrying out the technical audit of Ajaokuta and the technical competence of the firm to do the job, noting that only the firm that built the Steel Company have the technical capacity to audit.
The MOU that was signed on behalf of Nigerian government, the member wanted to know what percentage was set aside for the Host Communities and externalities, and the difference, between revitalization, privatization and concession as interchangeably used with respect to Ajaokuta saying “it is fraudulent to use such when the status of Ajaokuta Steel remain comatose”
Other players(private) in the Steel Sector Development also play an important role, the committee sought to know the relationship of the Ministry and ASCOM, hence Ajaokuta does not produce presently.
1.6 billion was provided in the 2024 to provide technical support in the steel development sector, and fully funded, the expenditure does not tally with the releases.
The establishment of scrap collection centres(hubs) in all the six geo-political zones oof the Country had not been carried out.
With the danger posed by the incessant and indiscriminate dealing in scrap metal, the Committe called for emergency to be declared in metal collection generally.
These and many issues raised by the Committee, were not given convincing answers by the Hon Shuaibu Audu, as such, the Committee stood down the session and adjourned till Wednesday 22/01/2024 by 11:00am prompt when the Minister is expected to come with relavant document.
