Reps probe concession of Ajaokuta Steel Rolling Mill

The House of Representatives on Wednesday unveiled plans to investigate the collapse of Ajaokuta Steel Rolling Mill (ASRM) despite investment of $20 billion.

The resolution was passed after the debate on the motion sponsored by Ben Nwankwo, who described the huge investment into Ajaokuta “as a huge embarrassment to the federation and all who mean well for her.”

While ruling, Emeka Ihedioha, deputy speaker, directed the joint committees on Steel, Privatisation and Commercialisation and Justice to investigate the concession, affairs and failure of ASRM and report back to the House for further legislative actions.

Speaking earlier, Nwankwo noted that “the employment potentials of this ambitious project has not been exploited because when fully operational, Ajaokuta Steel Rolling Mill was projected to be capable of generating over 15,000 direct employment and several thousands of indirect employment from activities related to the company.

“It is saddened that owing to the non-functioning of both companies, the nahas had to rely on the importation of iron and steel from other countries, leading to huge capital flight as approximately the sum of N1.3 trillion was reportedly spent on importation of steel into Nigeria in 2012 alone.

“The House is deeply worried that similar companies like Mittal Steel of India conceived at about the same period, though bigger than Ajaokuta Steel Rolling Mill is currently working at full capacity, whereas Ajaokuta Steel Rolling Mill has been dogged by controversy and non-performance from inception.”

The lawmaker, who called for the intervention of the House, lamented that there was lack of due diligence leading to the engagement of the erstwhile incompetent concessionaires and the pathetic abdication of post transition diligence and monitoring by the local institutions charged with the responsibility of monitoring the affairs of the company.

Nwankwo recalled that the company was commissioned in 1983 at 95 percent completion state as it was thought that funds to be generated from the production of steel from the completed components of the integrated steel plant will fund the completion of the remaining five percent of the project.