In a decisive move on Tuesday, the Senate announced its intention to delve into the operations of the Ajaokuta Steel Company Limited and the National Ore Mining Company in Kogi State, spanning from 2008 to the present.
At the heart of the investigation lies the perplexing $496 million payment purportedly disbursed to Mr. Pramod Mittal, Chairman of the Global Infrastructure Holdings Limited, by the Federal Government in September 2022, ostensibly as a resolution to contractual disputes.
Furthermore, the Senate aims to scrutinize the circumstances surrounding the re-concession of the National Iron Ore Mining Company (NIOMCO), despite the termination of the initial concession agreement by the Yar’adua administration, a decision bolstered by a favorable review from the International Chamber of Commerce, London.
The impetus for this inquiry stemmed from a motion put forth by Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), which was extensively deliberated upon by her colleagues in the Senate.
Highlighting the historical significance of these entities established by the Federal Government in the late 1970s, Senator Akpoti-Uduaghan lamented the failure of the Ajaokuta Steel Mill and NIOMCO to fulfill their potential in propelling Nigeria towards technological and industrial prominence. Despite successive administrations’ efforts, the inertia prevailed due to a combination of lacking political will and bureaucratic corruption.
She underscored the staggering annual expenditure of approximately $3.3 billion on steel imports, exacerbating the inefficiencies of the dormant company, which recently accrued a queried ₦33 billion electricity debt.
Consequently, the Senate formed a committee, chaired by Senator Adeniyi Ayodele Adegbonmire (SAN), and comprising Senators Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South), Joel Onowakpa (Delta), Onyesoh Allwell Heacho (Rivers East), Abdullahi Yahaya (Kebbi North), Patrick Chukwuba Ndubueze (Imo North), Tokunbo Abiru (Lagos East), and Osita Ngwu (Enugu West).
Tasked with reporting back within two weeks, the committee is mandated to liaise with relevant Ministries, Departments, Agencies, and stakeholders in the steel sector, particularly those associated with the Ajaokuta Steel Manufacturing Plant and NIOMCO, to compile a comprehensive report on the affairs of both plants from 2018 onwards.
