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$496m Payment: Senate Investigates Ajaokuta Steel Company, NIOMCO

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1 year ago

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The Senate has commenced investigation into the affairs of Ajaokuta Steel Company Limited and the National Ore Mining Company (NIOMCO) in Kogi State between 2008 to date.

The Senate is to unravel the mystery behind the payment of $496m allegedly made to Mr. Pramod Mittal, Chairman, Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 as settlement over said contractual disputes.

The Senate, it was gathered, is conducting a holistic investigation into the circumstances that led to the re-concession of NIOMCO even when the initial Concession Agreement was validly terminated by the Yar’adua Administration with positive review by the International Chamber of Commerce, London.

This followed a motion sponsored by the Senator representing Kogi Central, Sen Natasha Akpoti.

To this end, Sen Adeniyi Ayodele Adegbonmire SAN, is to be the Chairman of the investigative panel while Kawu Suleiman is to be the deputy Chairman.

Other members of the committee are: Sen Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South) Sen Joel Onowakpa (Delta), Sen Onyesoh Allwell Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Sen Patrick Chukwuba Ndubueze (Imo North), Senator Tokunbo Abiru (Lagos East) and Osita Ngwu (Enugu West).

While the committee is to report back to the Senate in two weeks, they are also to inite and interface with relevant Ministries, Departments and Agencies (MDAs)and other critical stakeholders in the steel sector especially those with interest in Ajaokuta Steel Manufacturing Plant and (all mining company NIOMCO to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2018 to date.

The Senate is also urging the Federal Government to review extant policies and laws on steel development in Nigeria with a view to adopting a strategic implementation Plan on Steel Development in Nigeria bearing in mind the importance of steel to Nigeria’s quests for industrialization and economic self-reliance and also investigate alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited and NIOMCO).

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This followed a motion sponsored by Sen. Akpoti-Uduaghan, Natasha (Kogi Central).

She said the Ajaokuta Steel Company Limited (ASCI) and the National Iron Ore Mining Company (NIOMCO) located in Kogi State were established sometime in the late 70s by the Federal Government with a potential to put Nigeria on the path of technological and industrial advancement, and establish the country as one of the leading exporters of steel products in the world.

“Notes also that decades after their establishment, the Ajaokuta steel mill and NIOMCO have remained inoperative and unable to produce steel despite seeming efforts by several administrations due to lack of earnest political will and bureaucratic corruption.

“Recalls that as at 1994, when the Tyazurom export (TPE) exited the Ajaokuta Steel Plant on alleged ground that Nigeria did not discharge fully its financial obligation to the TPE, the Ajaokuta Steel Plant was reportedly at 98% completion yet remains inoperative to date;

“Recalls also 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 which was unfortunately diminished following the surreptitious concessioning of NIOMCO and ASCL in June 2003 to unqualified Solgas Energy Limited, a company that lacked both financial and technical expertise as it were uncovered never to be in the business of ore and steel.

“Aware that contrary to the recommendation of the House Committee on Steel in 2004 that Solgas Energy Limited should partner with TPE which has the financial and technical expertise to complete and operate the ASCL and NIOMCO complexes, Solgas Energy Limited instead opted for partnership with another inept company the Global Steel Infrastructure Nigeria Limited (GINL) of India (a.k.a Global Steel Holdings Limited). GINL was alleged to completely run down not only ASCL. and NIOMCO but the Delta Steel Company:

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“Observes that upon consideration of the Inuwa Magaji Administrative Panel of Inquiry Report into the GINL’s operations of ASCI, NIOMCO and Delta steel mills, the Federal Executive Council under the leadership of Late President Umaru Yar’adua, unanimously terminated the Concession Agreement 2 April, 2008, citing breach of agreement and unwholesome practices including the fact that the said Concession Agreement was unpatriotically skewed in favor of GINL;

“Further observes that the House of Representative had in the past investigated the Iron and Steel Sector in Nigeria in 2018 with far reaching resolutions aimed at resuscitating the ASCL and ANIOMCO steel mills but such resolutions were either ignored or are yet to be implemented by the Federal Government:

“Disturbed that GSHL’s Pramod Mittal is notorious for dubious and questionable business activities with governments of many steel producing countries from the $253m organized economic crimes in India to embezzlement and asset stripping in Bulgaria, Philippines, Libya, Bosnia, Zimbabwe, Montenegro, Serbia and many more;

“Concerned that while Bosnia arrested and charged GSHL’s Pramod Mittal with organized crime and Bulgaria jailed GSHL’s management staff for economic crimes; Nigeria may have yet again fallen victim to GINL Pramod’s sharp contract fraud in respect of the payout of $496m in 2022. This comes years after a comical re- concessioning of NIOMCO to the same GINL in August 2016. These sadly facilitated by unpatriotic Nigerians occupying trusted government offices;

“Alarmed that Nigeria currently expends about $3.3bn annually on steel imports and quite saddened that a nation blessed with abundant natural ore resources yet plagued by moribund Ajaokuta and Delta steel that have become conduits pipes for diversion of public funds at the expense of Nigerian tax payers;

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“Worried that there exists an abnormal management structure at the Ajaokuta Steel Complex whereby a Sole Administrator has unilaterally decided upon the steel mill’s corporate affairs for the past 12 years. This has further worsened the inefficiency of the moribund company with the recently queried 33 billion naira electricity debt by President Tinubu,” she said.

While the Senate setup the investigative panel, deputy Senate President Barau Jibrin who presided over plenary commended Natasha for bringing the motion.

He said the motion will help in bringing more revenue to the government and also help in the irons rots that will help in building infrastructure in the country.

Speaking, Sen Solomon Adeola said salaries and wages of staff of moribund companies are just being paid in billions of naira, stressing the need to reposition the Ajakuta steel company and make it function optimally due to the value it will add to the steel market.

On his part, Sen Sani Musa said Ajakuta steel company has been moved from one fraudulent contractor to another, insisting that the investigation will help unravel so many frauds in the companies.

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Business

Senate Moves To Slash Data Prices, Calls For FG’s Intervention

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16 minutes ago

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March 27, 2025

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The senate has called on the federal government to take urgent action to address the rising cost of data services in the country.

During Wednesday’s plenary, lawmakers debated a motion sponsored by Asuquo Ekpeyong, senator representing Cross River south, highlighting the financial strain caused by recent hike in data tariffs.

Ekpeyong warned that the surge in data costs was a major setback for young Nigerians who depend on the internet for their livelihoods.

He argued that many young people use digital platforms for freelancing, e-commerce, content creation, and software development, making affordable internet access crucial to their economic survival.

“Telecommunication providers in Nigeria have recently increased the cost of data services by as much as 200%. A move that has placed significant financial strain on millions of Nigerians, especially young people who rely on the internet for their livelihood,” he said.

“Young Nigerians have embraced the digital economy, leveraging the internet for various income-generating activities including freelancing and remote work, direct marketing and social media management, e-commerce, content creation on various platforms, online training, software development, web design, mobile app creation, content creation of various platforms, online education, etc.

“The senate notes that young Nigerians have embraced the digital economy, leveraging the internet for their livelihood, leaving them heavily dependent on mobile telecommunications companies for internet access, and that the sudden and substantial increase in data cost threatens their economic survival and limits access to critical digital services.

“The senate is further concerned that the reasons provided by telecom providers for the data price hike, including high operational costs of favourable exchanges, are untenable, and appears that instead of addressing the root causes of the high cost of doing business in Nigeria, the burden is being unfairly transferred to end-users.

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“Senate is aware that the high cost of doing business in Nigeria is driven by multiple challenges, such as increased operational risk and insurance costs.

“The senate believes that urgent government intervention is required to ensure that affordable internet access remains available to all Nigerians, particularly to the young Nigerians who are at the backbone of Nigeria’s digital economy.

“The senate accordingly resolves to urge the federal government to engage with telecommunication providers to review the recent increase in data costs and ensure the pricing remains fair and affordable for all Nigerians.”

The motion was seconded by Titus Zam, senator representing Benue north-west, and received the support of other lawmakers.

Victor Umeh, senator representing Anambra central, criticised not just the rising cost of data but also increases in telecom charges and Pay TV tariffs, accusing regulatory bodies of failing to protect Nigerians.

“If you buy airtime or data, within minutes, you are out of it. Nigerians are suffering so much, and we cannot turn a blind eye,” he said.

Sadiq Umar, senator representing Kwara North, warned that the price hike disproportionately affects young people, who form a significant part of Nigeria’s workforce.

“These service providers must make life easier for young Nigerians, not harder. The government needs to step in before this situation worsens,” he said.

Lawmakers urged the federal government to engage telecom providers to review and reduce the recent increase in data costs.

They also called on the ministry of communications, innovation, and digital economy to develop a policy framework for affordable internet access.

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Lawmakers further recommended the creation of tech hubs across the country to provide free or subsidised internet for entrepreneurs, students, and innovators.

They also directed the senate committee on communications to investigate the factors driving high data costs and propose solutions to make the telecom sector more business-friendly.

Following the debate, Senate President Godswill Akpabio put the motion to a vote, and it was unanimously adopted.

Akpabio praised Ekpeyong for raising the issue, saying the intervention would support young entrepreneurs and ensure fair pricing in the digital economy.

“This motion, when implemented, will assist our young entrepreneurs, not only to remain in business but also to ensure that they have affordable pricing that allows them to generate profits,” he said.

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UBA dividend payment lifts market with N369bn gain

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2 days ago

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March 25, 2025

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The stock market opened the week on a positive note, with investors gaining N369 billion and performance indices rising by 0.56 per cent on Monday.

Specifically, the Nigerian Exchange Ltd. (NGX) market capitalisation increased by 0.56 per cent to N66.188 trillion from an opening of N65.819 trillion recorded on Friday.

The All-Share Index also rose by 0.56 per cent, or 588.43 points, to close at 105,551.39, up from 104,962.96 posted on Friday.

The surge in market capitalisation was due to the United Bank for Africa’s announcement of three Naira as dividend payment to shareholders, thereby boosting investor confidence in the banking sector of the market.

The market breadth closed positive, with 25 gainers and 22 losers.

On the gainers’ chart, Royal Exchange soared by 10 per cent to close at 88k, while Livestock Feeds gained by 9.87 per cent to close at N9.24 per share.

Abbey Mortgage Bank increased by 9.72 per cent, to close at N3.95, and Universal Insurance soared by 9.62 per cent to close at 57k per share.

Similarly, Sunu Assurance gained by 9.22 per cent to close at N5.45 per share.

On the losers’ chart, Nem Insurance lost by 9.63 per cent to close at N12.20, while United Capital declined by 9.29 per cent to close at N16.60 per share.

Computer Warehouse Group fell by 6.67 per cent to close at N8.40, and DAAR Communications lost by 6.06 per cent to close at 62k per share.

Also, Africa Prudential fell by 5.56 per cent to close at N15.30 per share.

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A total of 440.52 million shares, worth N10.470 billion, were exchanged across 13,314 transactions.

This is compared with 397.208 million shares, valued at N14.170 billion, exchanged across 10,099 transactions last Friday.

Transactions in Zenith Bank shares topped the activity chart with 55.062 million shares valued at N2.605 billion.

First City Monument Bank followed with 49.59 million shares worth N449.09 million, while United Bank for Africa sold 47.39 million shares valued at N1.835 billion.

Access Corporation traded 37.24 million shares worth N834.092 million, and Fidelity Bank transacted 31.298 million shares valued at N563.89 million.

Mr David Adonri, Vice President of Highcap Securities Ltd., said the surge in market capitalisation signified the return of investor confidence to the banking sector.

Adonri said, “Banks had earlier announced a delay in the submission of their financial year results.

“However, United Bank for Africa released its corporate disclosure, saying it is paying three Naira as final dividend, so that restored investor confidence in that sector.

“The sector is the arrowhead that drives the market. That was the development that propelled the market massively today.” (NAN)

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Explosion hits gas facility in Rivers

Published

3 days ago

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March 24, 2025

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An explosion has been reported at Soku gas pipeline along the Soku-Elok (Abua)-Rumuji-Bonny export terminal in Rivers state.

Confirming the development, Christian Otiasah, an environmental manager in Soku community, said the facility is “operated by Renaissance Group”, noting that the explosion triggered a fire that began late Saturday night.

Although the cause of the explosion remains unknown at the time of reporting, Otiasah said the incident occurred between 10 pm and 11 pm on March 22.

“There was an explosion and there was an attendant fire. The fire has been put off. It was put off because the Soku gas plant is automated such that depending on the impact, it can shut down itself,” he said.

“In other words, it can also isolate affected lines and starve off that line. If you starve the source of oxygen, the fire will naturally go off.

“The explosion actually occurred along the delivery gas line, not in the gas plant.”

The spokesperson of Renaissance did not respond when TheCable contacted him for comments.

The incident comes almost a week after an explosion ruptured a segment of the Trans-Niger Pipeline (TNP) in Bodo community, Gokana local government area (LGA) of the state.

The TNP, a critical federal oil transport line, feeds crude to the Bonny export terminal in Rivers.

Now under the control of Renaissance, the TNP was formerly operated by the Shell Petroleum Development Company of Nigeria Limited (SPDC).

The explosion had led to a temporary shutdown and raised concerns about potential environmental damage and oil supply disruption from the facility.

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On March 19, Tony Okonedo, Renaissance Group’s spokesperson, told TheCable that operations have resumed at the facility following a “third-party intervention”.

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