Senate frowns at N4.2bn personnel cost for Ajaokuta steel

The  Senate has frowned at the N4.2bn appropriated in the 2024 budget as personnel cost for unverifiable workers at the Ajaokuta Steel Company Limited.

The alleged unverifiable nature of workers at the non-functional steel company , came to the fore during an investigative hearing on the alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited and National Iron Ore Mining Company from 2002 to date, by an Ad-hoc committee of the Senate.

The Deputy Chairman of the Committee, Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), took up the Sole Administrator of the Steel Company, Summaila Abdul-Akaba, on the number of workers collecting salaries from the N4.2bn appropriated for personnel cost in the 2024 budget.

She stated that as an indigene of the area desirous to get the steel company revamped and working, she often makes unscheduled visits to the plant and hardly finds 10 people at work.

She lamented that despite such humongous amount of money being spent as personnel cost by the steel company yearly, no steel has been manufactured and no mill rolled.

Akpoti-Uduaghan said, “The sole administrator of Ajaokuta Steel Company, I have a good question for you being an indigene from the area, who is very worried about the state of the company and passionate for its revival .

“The sum of N4.2bn was appropriated for personnel cost in 2024 but from several visitations I’ve made to the complex, hardly were 10 people sighted to be around or doing anything.

“So, who are the workers collecting monthly salaries from the appropriated N4.2bn? Statistically, if N300,000 is paid monthly to 14,000 people per month for a year, you get N4.2bn or N500,000 to 8,400 workers per month in a year.”

Natasha further queried,  “Where are the 14,000 or 8,400 workers in Ajaokuta that the appropriated N4.2bn is being spent on?

“But in an embarrassment saving move, the minority whip of the Senate who is also a member of the committee, Senator Osita Ngwu (PDP Enugu West), prevented the sole administrator from responding to Natasha’s question.

Ngwu in his interjection, said, “Please don’t let us indict ourselves because the said appropriation was approved by the National Assembly.”

In his closing remarks at the investigative hearing, the Chairman of the Ad-hoc Committee, Senator Adeniyi Adegbonmire (APC Ondo Central), said presentations and submissions made by the various stakeholders would be thoroughly looked into by the committee for a solution to Ajaokuta Steel Company.

Key stakeholders at the investigative hearing include the permanent secretary of Ministry of Mines and Steel Development, a director from the Central Bank of Nigeria, a director from Bureau of Public Enterprises, Nigerian Society of Engineers, Steel and Engineering Union Workers of Nigeria, etc.