The federal Ministry of Steel Development is under intense scrutiny following claims of “ghost projects” and misuse of public funds, which have been flagged by a joint National Assembly committee.
These concerns surfaced after the ministry’s 2025 budget defense, led by Minister Shuaibu Audu.
Zainab Gimba, Chair of the House of Representatives Committee on Steel Development, made serious allegations that certain funds meant for capacity-building and training in the steel sector had not been utilized effectively.
“Upon reviewing the 2024 budget, we found multiple infractions. Funds allocated for skills development in the steel sector were either unaccounted for or showed no tangible impact,” Gimba revealed.
She stressed that these missteps contravene the Fiscal Responsibility Act, which demands that all public resources be used efficiently and for the intended purposes.
Gimba pointed out that some key projects, particularly those concerning the Ajaokuta Steel Complex, failed to meet regulatory standards, indicating possible mismanagement.
The committee’s concerns were echoed by Patrick Ndubueze, Chairman of the Senate Committee on Steel Development.
He underscored the importance of advancing the steel industry as a foundation for the country’s development.
“A thriving steel industry is critical for Nigeria’s growth. The focus should be on executing capital projects, not just paying salaries,” Ndubueze stated.
Furthermore, committee member Natasha Akpoti-Uduaghan questioned the minister’s proposal of a $2 billion investment to revitalize the Ajaokuta Steel Complex, noting the absence of a thorough audit to back such an enormous sum.
Minister Shuaibu Audu responded by assuring the committee that the issues raised would be thoroughly addressed.
However, the inquiry into the ministry’s operations has raised broader concerns about the stewardship of Nigeria’s steel sector, prompting calls for more stringent oversight and accountability.