The Federal Government of Nigeria has paid a staggering N38.9 billion in salaries and allowances to the workers of the moribund Ajaokuta Steel Company over the past decade, despite the company's failure to produce a single sheet of steel since its inception.
This revelation comes from an investigation reported by Saturday PUNCH on August 9th, 2024.
The Ajaokuta Integrated Steel Complex, conceived in 1979, was intended to be a cornerstone of Nigeria's industrialization, featuring a Metallurgical Process Plant, an Engineering Complex, and various auxiliary facilities.
The plant, which employs blast furnace technology, was 98% complete in terms of equipment installation by 1994. However, due to mismanagement, the project remains incomplete over 45 years later.
Despite its inactive status, the company continues to receive substantial annual budget allocations. Between 2014 and 2024, the government disbursed N29.11 billion in salaries and wages, and N9.8 billion in allowances to its staff. The personnel costs varied each year, peaking at N4.29 billion in 2024.
Senator Natasha Akpoti-Uduaghan, representing Kogi Central, raised concerns about the N4.2 billion appropriated for personnel costs in the 2024 budget, questioning the legitimacy of the workforce as her visits to the complex revealed hardly any active workers.
Efforts to revive the steel mill have been ongoing. In 2019, former President Muhammadu Buhari and Russian President Vladimir Putin agreed on a revitalization plan, which was delayed due to the COVID-19 pandemic.
More recently, in January 2024, President Tinubu initiated discussions with Luan Steel Holding Group, a Chinese steel company, but no tangible results have emerged.
Economists and experts have criticized the continued payment of salaries to idle workers as a waste of resources.
They advocate for a public-private partnership or privatization to maximize the potential of the Ajaokuta Steel Company.
The Minister of Steel Development, Shuaibu Audu, mentioned that the government is at an advanced stage of raising over N35 billion required to restart the Light Mill Section, with estimates indicating that between $2 billion and $5 billion would be needed to fully revive the plant within three years.
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