Business
$496m Payment: Senate Investigates Ajaokuta Steel Company, NIOMCO
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).
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:
“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;
“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.
The Nigerian National Petroleum Company (NNPC) Limited says negotiation is ongoing for a new naira-for-crude deal with Dangote Petroleum Refinery.
NNPC announced in a statement on Monday after TheCable reported earlier that the government-owned oil company had reportedly suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.
The discontinuation will force refiners to rely on international suppliers for crude oil, gulping huge costs in dollars and triggering an uptick in the pump price of petrol.
However, Olufemi Soneye, the chief corporate communications officer of NNPC, said the current deal will expire at the end of March.
“NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery,” Soneye said.
“To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.”
Under the current arrangement, Soneye said NNPC has made over 48 million barrels of crude oil available to Dangote refinery since October 2024.
“In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023,” he said.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.
Uba Sani, governor of Kaduna, has introduced policies at the state scholarship and loans board to enable students from less-privileged backgrounds to obtain sponsorships with ease.
Yahya Saleh Ibrahim, executive secretary of the board, announced the policies on Sunday while speaking to journalists.
He said the governor has ordered the removal of tax clearance as a requirement for accessing scholarship.
Ibrahim also said although the writing of essays is still a requirement to access scholarship, it is however done “to determine areas of students’ weakness that require support”.
He said Sani has also created seven scholarship awards zonal units to make it easier for students in rural areas to be screened, easing the burden of coming to the board’s headquarters in Kaduna.
The units are Zaria, Kafanchan, Kachia, Pambegua, Makarfi, Kaduna-north and Kaduna south zones.
He said the governor has provided 30 computers to the various units to simplify the application process.
He also said the board now conducts on-the-spot scholarships for indigenous citizens across tertiary institutions, adding that this effort has “enlisted over 4330 potential beneficiaries awaiting disbursement”.
“A total of 3,397 students have been awarded local scholarships from May 2023 to date. Thirty students have benefitted from the third-party tertiary education loans,” he said.
“The board has also secured 50 scholarships for secondary school students, in collaboration with the ministry of education, for indigent students from the Indomie Noodles DOFIL Company Kaduna.
“The inclusion of government special scholarship intervention programs for innovation, aviation, meritorious, underprivileged, and People with Special needs (PLWD) students, in the state is in the heart of His Excellency’s agenda.”
The National Bureau of Statistics (NBS) says Nigeria recorded N3.42 trillion trade surplus in the fourth quarter (Q4) of 2024.
The NBS, in its foreign trade report for Q4 2024, said Nigeria’s exports totalled N20.01 trillion while imports stood at N16.59 trillion.
A trade surplus is an economic indicator of a positive trade balance in which the exports of a nation outweigh its imports.
The bureau said total trade was N36.6 trillion in Q4, representing an increase of 2.20 percent compared to the N35.8 trillion recorded in the third quarter (Q1) of the year.
“Nigeria’s total merchandise trade stood at N36,604.83 billion in Q4, 2024. This represents an increase of 68.32% compared to the value (N21,747.40) recorded in the corresponding period of 2023 and a rise of 2.20% over the value recorded in the preceding quarter (N35,818.35),” NBS said.
“In the quarter under review, exports accounted for 54.68% of total trade with a value of N20,014.33 billion, showing an increase of 57.67% rise over the value recorded in the fourth quarter of 2023 (N12,693.62) and a decrease of 2.55% compared to the value recorded in Q3 2024 (N20,537.17).”
NBS further said crude oil continued to dominate exports trade in the quarter reviewed.
The statistics firm said crude oil exports stood at N13.78 trillion, representing 68.87 percent of total exports, while the value of non-crude oil exports stood at N6.23 trillion, accounting for 31.13 percent of total exports.
NBS added that non-oil products contributed N2.84 trillion or 4.20 percent of total exports.
The NBS said the Netherlands was Nigeria’s top export destination in Q4, followed by Spain, France, India, and Indonesia.
“The main export destination was The Netherlands with a value of N 2,089.96 billion or 10.44% of total exports, followed by exports to France with N1,909.76 billion or 9.54% of total exports, Spain with N1,737.68 billion or 8.68% of total export,” NBS said.
“India with N1,596.66 billion or 7.98% of total exports, and exports to Indonesia with goods valued at N1,406.77 billion representing 7.03% of total exports.
“These five countries collectively accounted for 43.67% of the value of total exports in Q4, 2024.”
In terms of imports, the bureau said China remained Nigeria’s major trading partner, with 27.80 percent (N4 61 trillion) worth of imported goods.
Others on the top five import routes were India (N1.89 trillion or 11.43 percent), Belgium (N1.38 trillion or 8.35 percent), the United States (N1.05 billion or 6.33 percent), and France ( N501 billion or 3.62 percent).