On Tuesday, the Nigerian Senate criticized the allocation of N4.2 billion in the 2024 budget for personnel expenses at Ajaokuta Steel Company Limited, raising questions about the legitimacy of the workforce.
The concerns emerged during an investigative hearing led by a Senate Ad-hoc Committee examining allegations of corruption and inefficiency at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, spanning operations from 2002 to date.
Deputy Chairperson of the Committee, Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central), scrutinized Sole Administrator Summaila Abdul Akaba on the matter.
Akpoti-Uduaghan, a frequent visitor to the site due to her vested interest in reviving the company, shared that she rarely observed more than ten people on-site despite the considerable personnel budget.
She expressed dissatisfaction with the lack of steel production or mill operations, despite the hefty allocation.
“For a budget that earmarks N4.2 billion for personnel in 2024, I’ve often encountered fewer than ten workers during my visits,” she remarked. “Who are the recipients of these funds?”
Akpoti-Uduaghan further calculated that with a monthly salary of N300,000, it would take 14,000 workers to account for the N4.2 billion allocation annually—or 8,400 workers at N500,000 per month.
“Where are these 14,000 or even 8,400 employees?” she demanded.
Senator Osita Ngwu (PDP, Enugu West), another member of the committee, advised the Sole Administrator against making comments that could incriminate himself, noting that the National Assembly had approved the appropriation.
In his closing remarks, the Chairman of the Ad-hoc Committee, Senator Adeniyi Adegbonmire (APC, Ondo Central), assured that the Committee would carefully examine all stakeholder submissions before compiling a detailed report on Ajaokuta Steel Company.
The hearing featured representatives from several key institutions, including the Ministry of Mines and Steel Development, the Central Bank of Nigeria, the Bureau of Public Enterprises, the Nigerian Society of Engineers, and the Steel and Engineering Union Workers of Nigeria.
