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Experts lament as FG spends N20bn on idle Ajaokuta Steel in six years
The Federal Government allocated N20.4bn to Ajaokuta Steel Company Limited from 2016 to 2021 despite the company’s idleness.
The data were collated from the appropriation bill for each year available on the website of the Budget Office of the Federation.
In 2016, N295.1m was allocated with N135.2m released by October of that year.
However, a detailed breakdown of the expenditures for the year was not available.
In 2017, the total allocation was N4.3bn with recurrent expenditures at N3.9bn and capital expenditures at N354.1m.
For the recurrent expenditures, total personnel cost was put at N3.8bn while total overhead cost was put at N75.3m.
In 2018, the total allocation was N4.3bn with recurrent expenditures at N3.9bn and capital expenditures at N354.1m.
For the recurrent expenditures, total personnel cost was put at 3.8bn while total overhead cost was at N75.3m.
Further breakdown showed that salaries and wages cost N2.9bn, allowances and social contribution cost 895.3m, uniforms and other clothing cost N2.5m, refreshments and meals cost N1.8m, and purchase of bus cost N41.3m.
Funds were also budgeted for certain projects such as the maintenance of power facilities for N106.3m, construction /provision of water facilities for N196.5m, lighting and security of Ajaokuta steel plant at N10m and purchase of a 30-seater bus at N413m.
In 2019, the total allocation was N3.6bn with recurrent expenditures at N3.3bn and capital expenditures at N262m.
For the recurrent expenditures, total personnel cost was put at N3.25bn while total overhead cost was put at N75.3m.
Further breakdown showed that salaries and wages cost N2.5bn, allowances and social contribution cost N793.6m, uniforms and other clothing cost N2.5m, refreshments and meals cost N1.8m, and purchase of bus cost N41.3m.
Funds were also budgeted for certain projects such as the maintenance of power facilities for N87.7m, construction /provision of water facilities for N123m, lighting and security of Ajaokuta steel plant at N10m and purchase of a 30-seater bus at N41.3m.
In 2020, the total allocation was N3.7bn with recurrent expenditures at N3.6bn and capital expenditures at N147.2m.
For the recurrent expenditures, total personnel cost was put at N3.5bn while total overhead cost was put at N51.5m.
Further breakdown showed that salaries and wages cost N43.3m, allowances and social contribution cost N5.4m, uniforms and other clothing cost N273,684, and refreshments and meals cost N1.6m.
Funds were also budgeted for certain projects such as the maintenance of power facilities for N43m, construction/provision of water facilities for N94.2m, and lighting and security of Ajaokuta steel plant at N10m.
In 2021, the total allocation was N4.2bn with recurrent expenditures at N4bn and capital expenditures at N253.9m.
For the recurrent expenditures, total personnel cost was put at N3.9bn while total overhead cost was put at N72.3m.
Further breakdown showed that salaries and wages cost N3bn, allowances and social contribution cost N846.5m, uniforms and other clothing cost N2.5m and refreshments and meals cost N1.8m.
Fund was budgeted for only one project in 2021, which was the construction/provision of water facilities for N80m.
Russia’s Tyazpromoexport built the plant, which was incorporated in 1979.
The steel mill reached 98 per cent completion in 1994, with 40 of its 43 plants having been built before it got stuck, with the remaining two per cent for external infrastructure like waterways and viable ports.
Despite the regular budget, the steel company is yet to commence full operations in over 42 years, with the government making failed attempts at privatisation and concession.
In an attempt to revamp the company, an Indian company, Global Steel Holdings Limited, won the concession of the Ajaokuta steel mill for a 10-year period but the agreement was revoked when the Federal Government accused the firm of asset stripping, a development which led to a court case between the two parties.
The Federal Government announced in 2016 that the legal dispute had been resolved, after it reportedly ceded the National Iron Ore Mining Company, Itakpe, to Global Steel for the remaining concession period, in line with an agreement reached during mediation talks.
However, the resolution has since turned contentious.
In 2019, the President, Major General Muhammadu Buhari (retd.), ordered the completion of the company.
In 2020, the Senate also passed a resolution urging the Federal Government to, as a matter of urgency, complete the Ajaokuta Steel Complex.
The Federal Government inaugurated the Ajaokuta Presidential Project Implementation Team.
The Minister of Mines and Steel Development, Olamilekan Adegbite, said that the Ajaokuta Presidential Project Implementation Team would enact a pact reached between Buhari and Russia’s President Vladimir Putin, which required the East European country to assist in completing the project and finding a Russian firm to manage it on Build-Operate-and-Transfer basis.
The minister said that Afreximbank would fund the project with $1bn, while the Russians would offer $460m, adding that a Russian firm, MetProm Group, would ensure the completion and operation of the steel company.
However, efforts at concession have failed.
There had also been calls on the Federal Government to privatise the company.
The Federal Government halted privatisation move, stating that the problem with the Ajaokuta Steel Company was very complex.
Adegbite had said that the Ajaokuta Steel Company Ltd. would function to capacity before the end of the regime of Buhari.
The minister added that the Federal Government had made efforts to ensure that the Russian company that built the steel industry would come to Nigeria to conduct a technical audit of the company.
Ajaokuta steel project, a waste of government scarce resources, say experts
An economist and a senior lecturer of economics at the Pan Atlantic University, Dr Olalekan Aworinde, who said that he was familiar with the establishment, described the company as a waste of government resources as it is currently inactive.
He, however, said that the company had the potential to significantly drive down unemployment, improve economic growth and boost the country’s foreign reserves.
He said, “I believe it is just a waste of government resources because If you go there you will see that there are a lot of workers, getting paid without working.
“Also, majority of the infrastructures that are put in place in that country are out of date and moribund; they can’t serve any purpose at this time.
“The only solution is to update the technology and equipment. The government should be ready to do a total overhaul of the establishment; bring in the right people and the latest technology.
“Iron oil is in abundance in Itakpe. So, if the government is able to revamp the establishment, it can reduce the rate of unemployment to a reasonable level.
“This will contribute immensely to the Gross Domestic Product growth of the country. It will also lead to the appreciation of the naira as we are going to demand less of the dollar.
“You see all those steel that we import into the country, they require foreign exchange to get them into the country.
“In summary, a functional Ajeokuta Steel Company will mean improved economic growth, reduction in unemployment. It will also help to stabilise the forex market and improve our foreign reserves.”
A former President of the Nigerian Metallurgical Society and a professor of metallurgical and materials engineering, Federal University of Technology, Akure, Benjamin Adewuyi, said that the problem with Ajaokuta was internal.
He said, “Ajaokuta Steel Company has a problem that is internal but it is not that it cannot be revived. Ajaokuta can be revived.
“The greatest problem is that those people who have benefitted in past in the corruption of Ajaokuta will not allow Ajaokuta to function.”
He added that the company could function in six to eight months if the government implemented a steel programme and allowed those in the Ajaokuta Presidential Project Implementation Team to function.
He added, “We have told the government several times that in less than six to eight months, Ajaokuta will start functioning if a steel programme is put in place.
“If the government allows the people who have been appointed to look at the situation in Ajaokuta to function, I am sure very soon we will see the difference between the moribund industry and the functioning industry.”
He further emphasised the need for a steel university, which he believed would provide manpower for the steel company.
“If Ajaokuta starts to work, it would require a steel university to bring out manpower for the steel plant to function well,” he said.
In May this year, the Senate passed the Nigerian Steel University Bill after the adoption of the report of the Senate Committee on Tertiary Institutions and TETFUND.
Sen. Sam Egwu, who presented the report of the Committee on behalf of the Chairman, Sen. Ahmed Kaita, said that the Nigeria Steel University, when established, would provide the required manpower for metallurgical and technological advancement in the country.
PUNCH
Son of the late head of state and former Minister of Defence, Chief Thomas Aguiyi-Ironsi, in a letter of remembrance and solidarity written on behalf of the Aguiyi-Ironsi family to the Fajuyi family, marking the 60th anniversary of his death, said July 29, 2026, will be a solemn occasion to honour a soldier they described as “a war hero who offered himself as a sacrificial lamb for the unity and integrity of the nation.”
The family recalled that Lt Col Fajuyi, then Military Governor of the Western Region, made the ultimate sacrifice in 1966 when mutinous soldiers abducted him alongside Maj Gen Aguiyi-Ironsi in Ibadan during the military counter-coup.
They stated that Fajuyi, in a defining moment of conscience, chose honour over personal safety and refused to abandon his guest and superior, a decision the family said reflected the highest ideals of loyalty, integrity, and military brotherhood.
According to the statement, his action transformed him into a national martyr whose legacy continued to inspire unity, courage, and selfless service.
The Aguiyi-Ironsi family also expressed sympathy with the Fajuyi family, acknowledging the enduring pain of their loss, while praying for continued strength, comfort, and peace.
The statement further stated, “He did not run. He did not hide. He chose to stand. In that sacrificial decision lay the essence of his greatness.”
The family called on government institutions, military authorities, and custodians of national memory to ensure sustained recognition and support for the Fajuyi family, stressing that his sacrifice remained a national responsibility to remember and honour.
It urged Nigerians to draw inspiration from his life and death, noting that his legacy continues to challenge the nation to uphold unity, courage, honour, and selfless service.
Fajuyi was killed on July 29, 1966, during the military counter-coup in Ibadan alongside Aguiyi-Ironsi.
By Okey Maduforo Awka
The emergence of Chief Ikeagwuonu Ugochinyere as the Minority Leader of the Federal House of Representatives has been described as a vindication of the fact that the Action People’s Party (APP ) represents the collective interests of the Nigerian masses.
Recall that recently, Ugochinyere was elected as the Minority Leader of the party in a keenly contested election of the Federal House of Representatives.
According to a statement by the Chairman Anambra state chapter of the APP Chief Chijioke Okeke, Ugochinyere had been consistent in offering himself as the voice of the people and that of the voiceless.
“It did not come to us as a surprise that our great leader High Chief Ugochinyere became the Minority leader of the Federal House of Representatives because he has always been consistent and focus towards providing himself as the only vent for the masses at the Green Chambers”
“We know his pedegre as a politician as well as a leader and he has remained focus in ensuring that the voiceless are heard and this is also a vindication of our party’s unflinching desire to provide a veritable platform in a democratic process”
Okeke further stated that the fifth columnists who had attempted to deregister the party have been put to shame adding that the party shall continue to champion the interests of the Nigerian people.
“They made failed attempt at deregistering our great party but they lost sight of the fact that the APP is firmely rooted on ground and has all that it takes to drive the wishes and aspirations of the Nigerian populace and with this recent development our traducers have been put to shame and our party is on the path of further greatness “. Okeke noted .
By Okey Maduforo Awka
Six members of the Indigenous People Of Biafra IPOB have been declared wanted by the Nigerian Police .
The six persons led by Mr Chukwuebuka Ohaechesi, include Emma Okonkwo, Jude Uwa, Gentle Okoro, Uchenna Dike, and Emmanuel Nwankwo who are said to be at large.
The were said to have fled to neighboring states in the South East hence signaling the other four Police Commands in the geopolitical zone to assist in the manhunt for them
The Police accused them of executing protests against the detaintion of the leader of IPOB Mazi Nnamdi Kanu who is currently serving jail terms in Sokoto Correction Center.
According to a statement issued by the Abia Police Public Relations Officer of the Command, ASP Eguavon Omokaro, the individuals are suspected members of IPOB who have allegedly participated in protests at various times and locations within the state.
The statement alleged that the protests were organised in connection with the continued detention of Mazi Nnamdi Kanu and demands for justice through the judicial process.
The Police Command further stated that these protests have allegedly resulted in breaches of peace and disruptions to law and order in Abia State. Consequently, the Police Intelligence Department reportedly concluded that the named individuals were among the principal organisers and coordinators of the demonstrations.
The statement further alleged that; ;
“It should be noted that on every 30th day of May, these men and their cohorts convene for the so-called remembrance of Biafra, holding clandestine meetings at various locations in the name of the emancipation of the Biafran Republic and the release of Mazi Nnamdi Kanu.”
According to the police, the six individuals were invited on several occasions for questioning in relation to the allegations against them.
The statement indicated that the first invitation was issued on 18 December 2025, followed by a second invitation on 7 February 2026, and a third invitation on 3 March 2026.
The police alleged that the individuals failed to honour all three invitations.
The statement further asserted:
“These individuals were invited by the police on several occasions. Firstly, on 18 December 2025, they failed to honour the invitation. Again, they were invited on 7th February 2026 and failed to appear. Finally, they were invited on 3 March 2026, and they also failed to present themselves before the police.” It stated.
As a result, the Abia State Police Command announced that all six individuals had been formally declared wanted.
The police appealed to members of the public to provide any reliable information that could lead to their arrest and prosecution, stating that informants would be suitably rewarded.
The declaration of the six individuals as wanted persons is linked to allegations of their participation in pro-Biafra activities, demonstrations concerning the detention of Mazi Nnamdi Kanu, and their alleged association with IPOB, an organisation that has been the subject of extensive scrutiny and security operations by Nigerian authorities.
In a statement shared on social media, VeryDarkMan argued that Wike may not fully understand the pain and trauma experienced by parents of abducted children and affected teachers. He claimed that the minister’s children were educated abroad, away from the security challenges facing many Nigerian families.Nigerian entertainment news
The activist stated that insecurity, kidnapping, and attacks on schools remain serious national concerns and should not be dismissed or reduced to political issues. He stressed that the fears and frustrations of parents whose children face security threats deserve greater attention from public officials.
VeryDarkMan further warned that political power is temporary, urging leaders to remain accountable to the people and sensitive to the challenges confronting ordinary Nigerians.
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