The Nigerian Senate’s Decision to Investigate Ajaokuta Steel and NIOMCO
The Nigerian Senate has formally announced the establishment of an Ad-hoc Committee with the mandate to conduct a comprehensive investigation into the operations of Ajaokuta Steel Company Limited and the National Iron Ore Mining Company (NIOMCO) in Kogi state. The probe will encompass the period from 2008 to the present day. This decision was initiated by a motion put forward by Senator Natasha Akpoti-Uduaghan, who represents Kogi Central senatorial district. The purpose of the investigation is to unravel the circumstances surrounding the re-concession of NIOMCO, the termination of the initial concession agreement by the Yar’adua administration, as well as the reported $496m settlement paid to the Chairman of Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 to resolve ASL contractual disputes.
Established by the Federal Government in the late 1970s, Ajaokuta Steel and NIOMCO were envisioned to position Nigeria as a leading steel exporter. However, they have remained non-operational for several decades due to political inertia and bureaucratic corruption. Senator Akpoti-Uduaghan expressed dismay that despite Ajaokuta Steel reportedly being at 98% completion since 1994, it has yet to become operational. She also questioned the legitimacy of the 2003 concession of NIOMCO and ASCL to Solgas Energy Limited, a company deemed to lack the requisite financial and technical expertise for ore and steel operations.
Concerns were also raised regarding the termination of the Concession Agreement in April 2008, as the operations of ASCL, NIOMCO, and Delta steel mills were found to be in breach of agreements and tainted by unwholesome practices. A separate investigation conducted by the House of Representatives in 2018 produced resolutions aimed at reviving the ASCL and ANIOMCO steel mills, but these have not been implemented by the Federal Government.
In light of these revelations, the Nigerian Senate has directed the Federal Government to reassess existing policies and laws governing steel development in the country, in order to formulate a strategic implementation plan that acknowledges the significance of steel to Nigeria’s aspirations for industrialisation and economic self-reliance. To facilitate this objective, a committee led by Senator Adenjyi Adegbonmire and his deputy, Senator Suleiman Kawu, has been established to investigate alleged corruption within Ajaokuta Steel Company Limited and the National Iron Ore Mining Company. The committee comprises members from various senatorial districts, and they are expected to present their findings to the Senate for deliberation and adoption within a two-week timeframe.
