The Chairman of the Senate ad-hoc committee investigating activities at Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, Itakpe, both in Kogi State, Senator Adeniyi Adegbonmire has said that the committee is here to discover the reasons for the inoperation, and break the jinx surrounding it.
He made this statement on Wednesday at a meeting with the workers and management of both companies. He said:
“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.”
In his address, the acting Chief Executive of the company, Kanwai Joseph, expressed gratitude for the committee’s interest in the company. He said that although the steel plant was inoperational, they were committed to acting with integrity while delivering quality products.
“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.” The CEO promised.
The Ajaokuta Integrated Steel Complex, was conceived in 1979 and designed to include a Metallurgical Process Plant, an Engineering Complex, and various auxiliary facilities.
Though it was envisioned to encourage upstream and downstream economic activities, the facility had yet to produce a single sheet of steel since its inception.
In August 2024, the Federal Government had paid workers of the dormant steel company N38.9 billion in salaries and allowances over a 10-year period.
In September 2024, the Federal Government, through the Minister of Steel Development, Shuaibu Audu, signed a Memorandum of Understanding with the builders of the Ajaokuta steel plant, Messrs Tyazhpromexport, for the rehabilitation, completion, and operation of the plant and the National Iron Ore Mining Company.
The particular choice of location of the steel company in Kogi state is probably due to the abundance of Iron Ore in the state. However, production has not commenced in the state. It is hoped that this time, the story would be different.
