Abubakar Audu, minister of Steel Development, has assured Nigerians that the long-anticipated technical audit of the Ajaokuta Steel Company Limited will commence in February.
This audit is expected to facilitate the rehabilitation and eventual operation of both the steel plant and the National Iron Ore Mining Company (NIOMCO) located in Kogi State.
Audu made the announcement while defending the ministry’s 2024 budget and 2025 appropriation before the National Assembly’s Joint Committee on Steel Development.
The audit was part of an agreement signed in September last year between the federal government and the plant’s original builders, Tyazhpromexport (TPE), alongside their partners, Novostal M and Proforce Manufacturing Limited.
During the session, Natasha Akpoti-Uduaghan, a senator representing Kogi Central where the Ajaokuta project is located, pressed the minister for a specific timeline, expressing dissatisfaction with the lack of progress four months after the agreement.
She emphasised the urgency of the audit, stating, “Time is of the essence; we need a definite commencement date to ensure the project’s revival.”
Chris Osa-Isokpunwu, permanent secretary of the ministry, explained that the delay stemmed from the ongoing procurement process and the need for approval from the Bureau of Public Procurement (BPP).
He noted that once ‘no objection’ certificate is issued, the proposal would be submitted to the Federal Executive Council (FEC) for final approval.
However, Akpoti-Uduaghan and other committee members expressed frustration over the ministry’s perceived sluggishness, urging them to expedite the process.
The minister acknowledged the criticism, promising to intensify efforts to secure the necessary approvals by the end of January.
He stated, “We are committed to ensuring the technical audit begins promptly, as this project holds significant importance for Nigeria.”
Meanwhile, the joint committee raised concerns about a N2 billion project intended to train youths in metalworks.
The initiative, described in budget documents as “technical support for SMEs for training around foundry production in three geopolitical zones,” was reportedly advertised differently as a boot camp for 700 youths.
Zainab Gqimba, the panel co-chair, questioned the inconsistency and called for clarity, warning that such discrepancies could lead to allegations of misappropriation. Akpoti-Uduaghan further cautioned that the mismatch could attract scrutiny from anti-corruption agencies.
In response, the minister pledged to address the concerns and ensure transparency in the execution of the project, reaffirming the ministry’s commitment to supporting youth empowerment and industrial development.
The Ajaokuta Steel project, once hailed as a potential game-changer for Nigeria’s industrialisation, has faced decades of delays. The renewed efforts aim to finally put the project back on track.
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