The National Assembly Joint Committee on Steel Development has raised concerns over alleged breaches of procurement laws and the presence of “ghost projects” in the Ministry of Steel Development’s 2024 budget execution.
During the ministry’s 2025 budget defense in Abuja, co-chaired by Zainab Gimba, the committee called for a forensic audit of the ministry’s accounts to uncover potential mismanagement of taxpayer funds.
Gimba highlighted discrepancies in the ministry’s submissions, noting, “The 2024 budget includes allocations for unspecified ‘capacity-building programs’ and ‘skills training initiatives’ with no evidence of execution or impact. These projects appear to be ghost initiatives aimed at diverting public funds.”
She also cited violations of the Fiscal Responsibility Act and the Public Procurement Act, pointing out non-competitive bidding, inflated contract costs, and a lack of accountability in major projects, including those related to Ajaokuta Steel.
Gimba added, “Administrative and recurrent costs soared in 2024 without proportional activity increases, indicating possible mismanagement. Expenditures must be backed by proper documentation and outcomes, as mandated by Nigeria’s Financial Regulations.”
The committee recommended engaging independent auditors to scrutinize the ministry’s 2024 expenditures and contracts.
Concerns Over 2025 Budget
The committee also criticized the ministry’s 2025 budget proposal for its focus on personnel costs, which account for 57.2% of the budget, leaving only 34.6% for capital expenditure. Gimba argued, “Capital investment is critical for infrastructure, technology, and modernization needed to transform the steel sector into a driver of Nigeria’s industrial growth.”
The committee noted the lack of a detailed breakdown for strategic expenditures, such as feasibility studies and stakeholder engagement, which undermines the ministry’s capacity to meet its objectives.
In his remarks, Senator Patrick Ndubueze, the committee’s chairman, emphasized the importance of prioritizing capital projects over salaries. “Nigeria’s progress depends on a robust steel industry. We must emphasize infrastructure development to realize this potential,” he stated.
The committee vowed to intensify oversight in 2025 to ensure accountability and strategic investment in the steel industry.
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