The National Assembly Joint Committee on Steel Development has raised concerns over alleged procurement law breaches and “ghost projects” in the Ministry of Steel Development‘s 2024 budget.
The committee has recommended a forensic audit of the ministry’s 2024 accounts to uncover the truth behind these projects, which are suspected to have diverted taxpayers’ funds.
Co-chairman of the committee, Zainab Gimba, highlighted several infractions during the ministry’s 2025 budget defence.
These include funds allocated for unspecified “capacity-building programs” and “skills training initiatives” with no evidence of execution or impact. Gimba also noted significant increases in administrative and recurrent costs without proportional increases in the ministry’s activities or outputs, indicating possible mismanagement or misallocation of funds.
She said, “A first-hand appraisal of the 2024 submissions shows some budget infractions as funds allocated for unspecified ‘capacity-building programmes’ and ‘skills training initiatives’ in the steel sector show no evidence of execution or impact.
“These projects risk being classified as ghost projects designed to divert public funds. Administrative and recurrent costs significantly increased in 2024 without proportional increases in the ministry’s activities or outputs, a possible indicator of mismanagement or misallocation of funds.
“Also, we identified some legal infractions, such as violations of the Fiscal Responsibility Act. The Act mandates efficient use of public resources and accountability for project outcomes. Several projects, especially related to Ajaokuta Steel, failed to meet these criteria.”
Other breaches of the Public Procurement Act cited by Gimba include non-competitive bidding and inflated contract costs.
The committee has advised the ministry to provide necessary submissions on these projects and recommended engaging independent auditors to scrutinize expenditures and contracts for 2024.
The committee has also expressed concerns over the ministry’s 2025 executive budget, which allocates 57.2% of funding for personnel costs and only 34.6% for capital expenditure. This raises concerns about operational efficiency and the ministry’s ability to drive industrial growth in the steel sector.
Chairman of the joint committee, Patrick Ndubueze, emphasised the importance of a solid steel industry for Nigeria’s progress, stressing the need for emphasis on capital projects over salary payments.
The committee has vowed to strengthen oversight in 2025 and ensure that the ministry aligns its funding priorities and operational efficiency with its strategic objectives.
