Senator representing Kogi Central, Natasha Akpoti-Uduaghan, on Tuesday, moved a motion to investigate alleged corruption and inefficiency at the Ajaokuta Steel Company Limited (ASL) and the National Iron Ore Mining Company (NIOMCO) located in Kogi, respectively.
Presenting her motion on the floor in plenary, Senator Akpoti-Uduaghan urged the Senate to investigate the affairs of Ajaokuta Steel and NIOMCO between 2008 to date.
According to her, the investigation would uncover the circumstances that led to the re-concession of NIOMCO, as the initial concession agreement was validly terminated by the Yar'adua administration.
The Kogi lawmaker also sought an investigation into the payment of $496 million allegedly made to the Chairman, Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 as a settlement over ASL contractual disputes.
According to her, Ajaokuta Steel and NIOMCO were set up by the Federal Government in the late 70s to establish Nigeria as a leading steel exporter but have been inoperative for decades due to a lack of political will and bureaucratic corruption.
She explained that since 1994, when the Tyazhpromexport (TPE) exited the Ajaokuta Steel on the alleged ground that Nigeria did not discharge fully its financial obligation to the TPE, the Ajaokuta Steel was reportedly at 98 percent completion yet remains inoperative to date.
She revealed that sometime in 2001, Nigeria's hope to have the Ajaokuta Steel Plant completed and put into operation was rekindled following the signing of the bilateral Agreement between Nigeria and the Russian Federation.
This noble idea was unfortunately diminished following the surreptitious concessions of NIOMCO and ASCL in June 2003 to unqualified Solgas Energy Limited, a company she described as lacking both financial and technical expertise as it was uncovered never to be in the business of ore and steel.
She further noted that the concession of ASCL and NIOMCO complexes took place contrary to the recommendation of the House Committee on Steel in 2004.
