The Chairman of the Senate ad-hoc committee, tasked with probing the operations of the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company in Itakpe, Kogi State, has stressed that it is time to break the “jinx” that has long plagued Ajaokuta Steel Company.
According to The PUNCH, this statement was made on Wednesday by Senator Adeniyi Adegbonmire, who heads the committee, during an official meeting with the management and employees of the steel company.
The Senator underscored the importance of unraveling the reasons behind the plant’s prolonged inactivity, stating, “The committee is here at the steel plant with a firm commitment to uncover why the Ajaokuta steel plant remains non-operational, decades after its establishment. Our visit is aimed at gaining an understanding of the situation and gathering first-hand information. Our mission is to break the jinx and ensure the steel plant becomes operational.”
The visit comes as part of a renewed effort by the government to resuscitate the steel plant, which has been inactive for decades despite its critical importance to Nigeria’s industrialization goals.
The project, conceived in 1979, was envisioned to be a fully integrated steel complex, comprising a Metallurgical Process Plant, an Engineering Complex, and various support infrastructures.
It was intended to serve as a catalyst for upstream and downstream industries, which would drive economic diversification and boost industrial development.
In his remarks, the acting Chief Executive of Ajaokuta Steel Company, Kanwai Joseph, welcomed the committee’s visit and expressed gratitude for their renewed interest in the steel giant.
He highlighted the company’s responsibility in safeguarding a significant national asset, adding, “We recognise the trust placed in us to manage national assets such as this steel plant, and we are committed to transparency and accountability. Although the plant has not been in production, we strive to operate with integrity, preserve this significant government investment, and deliver quality products when in operation.”
Joseph acknowledged the concerns of inefficiency and corruption that have dogged the steel plant over the years and pledged the company’s full cooperation with the Senate committee.
“We understand that allegations of corruption and inefficiency are serious concerns. We assure you of our full cooperation during this investigation. You will have unrestricted access to our facilities and information, and our team is prepared to address any questions or concerns to ensure a thorough and impartial investigation. We will begin by providing an overview of the company’s past, its current state, and the reasons for the present situation,” he assured.
Despite decades of dormancy, the government has continued to pay salaries to the workers of Ajaokuta Steel Company. In August 2024, it was revealed that a staggering N38.9 billion had been paid in wages and allowances over a span of 10 years, even though the company has yet to produce a single sheet of steel since its inception.
In a bid to turn the fortunes of the steel company around, the Federal Government, through the Minister of Steel Development, Shuaibu Audu, signed a Memorandum of Understanding in September 2024 with Messrs Tyazhpromexport, the original builders of the plant.
The MoU lays out the framework for the rehabilitation, completion, and eventual operation of the Ajaokuta Steel Complex and the National Iron Ore Mining Company.
This initiative, combined with the Senate committee’s investigation, reflects a renewed sense of urgency in addressing the long-standing issues that have hampered the progress of the steel industry in Nigeria.
The success of these efforts could unlock the potential of Ajaokuta Steel and transform it into a key driver of Nigeria’s industrialization and economic growth.
