Senate faults N4.2bn salaries for unverified Ajaokuta steel workers

• Published On: 30 July 2024 at 19:58

On Tuesday, the Senate expressed concern over the N4.2 billion earmarked in the 2024 budget for human costs at Ajaokuta Steel Company Limited that cannot be verified.

The issue arose during an Ad-hoc Senate committee's investigation into suspected corruption and inefficiency at Ajaokuta Steel Company Limited and National Iron Ore Mining Company from 2002 to the present.

Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), Deputy Chairman of the Committee, questioned the Steel Company's Sole Administrator, Summaila Akaba, about a number of workers receiving pay from the N4.2 billion budgeted for personnel costs in 2024.

She stated that as an indigene of the area who wanted to see the steel firm revived and operational, she made unexpected trips to it and only found 10 individuals.

The congressman went on to say that despite spending so much money on personnel, no steel was made and no mill rolled.

She stated, "The sum of N4.2 billion was budgeted for human costs in 2024, but from multiple visits I've made to the facility, scarcely ten persons were seen to be present or doing anything.

"So, who are the workers who are receiving monthly pay from the N4.2 billion appropriated?


"Statistically, if N300,000 is paid monthly to 14,000 persons per month for a year, you will receive N4.2 billion or N500,000 to 8,400 workers per month.

"Where are the 14, 000 or 8,400 workers in Ajaokuta that the appropriated N4.2 billion is being spent on?"

Senator Osita Ngwu (PDP Enugu West), the Senate's Minority Whip and committee member, however, blocked the lone administrator from answering to Natasha's query.

In his interjection, Ngwu stated, "Please don't let us indict ourselves because the appropriation was approved by the National Assembly."

Senator Adeniyi Adegbonmire (APC - Ondo Central), Chairman of the Ad hoc Committee, stated in his concluding remarks at the investigative hearing that the committee will thoroughly review presentations and submissions made by all stakeholders in order to find a solution.