Senate Committee Speaks On Reviving Ajaokuta Steel Company

The Nigerian Senate has reiterated its commitment to reviving operations at the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company in Itakpe, Kogi State.

The Chairman of the Senate ad-hoc committee tasked with investigating the operations of the Ajaokuta plant stressed the urgent need to dispel the longstanding “jinx” that has hindered the company.

Naija News reports that Senator Adeniyi Adegbonmire, who led the senate committee, articulated this sentiment during a meeting held on Wednesday with the company’s workforce and management.

He said the committee is dedicated to determining the reasons behind the prolonged inactivity of the Ajaokuta steel plant, which has remained dormant for decades since its inception.

He further noted that their objective is to understand the circumstances and collect direct insights thoroughly.

Adegbonmire stated that the committee is resolute in its mission to eliminate the jinx and facilitate the operational status of the steel plant.

In his welcome address, the acting Chief Executive of the company, Kanwai Joseph, expressed gratitude for the committee’s interest in the company.

He remarked, “We recognize the trust placed in us to manage national assets such as this steel plant, and we are committed to transparency and accountability. Although the plant has not been in production, we strive to operate with integrity, preserve this significant government investment, and deliver quality products when in operation.

“We understand that allegations of corruption and inefficiency are serious concerns. We assure you of our full cooperation during this investigation. You will have unrestricted access to our facilities and information, and our team is prepared to address any questions or concerns to ensure a thorough and impartial investigation. We will begin by providing an overview of the company’s past, its current state, and the reasons for the present situation.”

Naija News reports that the Ajaokuta Integrated Steel Complex, initiated in 1979, was intended to encompass a Metallurgical Process Plant, an Engineering Complex, and several supporting facilities.

This initiative aimed to foster essential upstream and downstream industrial and economic activities, which are crucial for the diversification of the economy towards industrialization.

Nevertheless, in August 2024, the Federal Government disbursed N38.9 billion in salaries and allowances to employees of the inactive steel company over a decade, despite the fact that the company has not produced a single sheet of steel since its establishment.

In September 2024, the Federal Government, represented by the Minister of Steel Development, Shuaibu Audu, entered into a Memorandum of Understanding with the construction firm Tyazhpromexport for the rehabilitation, completion, and operation of the steel plant as well as the National Iron Ore Mining Company.