Senate committee vows to revive Ajaokuta steel plant

The Chairman of the Senate ad-hoc committee investigating activities at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, Itakpe, both in Kogi State, has asserted that it is high time the “jinx” surrounding Ajaokuta Steel Company was broken.

The committee, led by Senator Adeniyi Adegbonmire, made this statement on Wednesday during a meeting with the workers and management of the company.

“The committee is here at the steel plant with a firm commitment to uncover why the Ajaokuta steel plant remains non-operational, decades after its establishment. Our visit is aimed at gaining an understanding of the situation and gathering first-hand information. Our mission is to break the jinx and ensure the steel plant becomes operational,” Adegbonmire declared.

In his welcome address, the acting Chief Executive of the company, Kanwai Joseph, expressed gratitude for the committee’s interest in the company. He remarked, “We recognise the trust placed in us to manage national assets such as this steel plant, and we are committed to transparency and accountability. Although the plant has not been in production, we strive to operate with integrity, preserve this significant government investment, and deliver quality products when in operation.

“We understand that allegations of corruption and inefficiency are serious concerns. We assure you of our full cooperation during this investigation. You will have unrestricted access to our facilities and information, and our team is prepared to address any questions or concerns to ensure a thorough and impartial investigation. We will begin by providing an overview of the company’s past, its current state, and the reasons for the present situation.”

The Ajaokuta Integrated Steel Complex, conceived in 1979, was designed to include a Metallurgical Process Plant, an Engineering Complex, and various auxiliary facilities. The project was envisioned to stimulate vital upstream and downstream industrial and economic activities, critical for diversifying the economy towards industrialisation.

However, in August 2024, the Federal Government paid workers of the dormant steel company N38.9 billion in salaries and allowances over a 10-year period, despite the company’s inability to produce a single sheet of steel since its inception.

In September 2024, the Federal Government, through the Minister of Steel Development, Shuaibu Audu, signed a Memorandum of Understanding with the builders of the Ajaokuta steel plant, Messrs Tyazhpromexport, for the rehabilitation, completion, and operation of the plant and the National Iron Ore Mining Company.