The Senate has once again expressed concerns regarding the prolonged inactivity of the Ajaokuta Steel Company Limited (ASCOL) in Kogi State, Nigeria. Since its establishment, ASCOL has remained non-operational for nearly 40 years.
During a one-day investigative hearing focused on allegations of corruption and inefficiency at ASCOL and the National Iron Ore Mining Company (NAICOM) and the overall performance of federal government-owned enterprises since 2002, the Senate Ad-hoc Committee uncovered several troubling issues.
Lawmakers were taken aback by the presentation made by the Minister of Steel Development, represented by Permanent Secretary Dr. Chris Osaruwanmwen, which was criticised as “insufficient.”
Senator Adeniyi Ayodele Adegbonmire (SAN), chairman of the committee, questioned how Ajaokuta could function when the ministry in charge submitted only a sparse two-page memorandum. “What you provided lacks the substance needed to address Ajaokuta’s challenges. Explain the issues and the steps taken to resolve them; your presentation indicates a lack of oversight,” he stated.
The committee also learned that the privatisation and concession agreements regarding the company were outside Nigeria’s best interest. Under the concession with Global Infrastructure Nigeria Limited (GINL), GINL was expected to inject capital into the company, yet they still needed to invest funds.
Adding to the frustration, Nigeria controversially paid GINL $496 million as part of an out-of-court settlement, despite GINL contributing only a few dollars. This revelation sparked outrage among Senate members, highlighting the financial mismanagement involved.
