National Assembly Questions Budget Infractions in Ministry of Steel Development, Recommends Forensic Audit

By DAYO ADESULU
The National Assembly’s Joint Committee on Steel Development has raised concerns over alleged breaches of procurement laws in the execution of the Ministry of Steel Development’s 2024 budget. The committee has called for a forensic audit to uncover discrepancies, particularly “ghost projects” that reportedly consumed an unspecified amount of public funds.
Key Findings and Allegations
Co-chairman Zainab Gimba highlighted significant budget irregularities during the Ministry’s 2025 budget defense, led by Minister Prince Shuaibu Abubakar Audu, over the weekend.
- Budget Infractions:
- Funds were allocated to unspecified “capacity-building programmes” and “skills training initiatives” with no evidence of implementation or impact.
- Administrative costs rose disproportionately to the Ministry’s activities or outputs, raising concerns about fund mismanagement.
- Violations of Fiscal Responsibility and Procurement Acts:
- Instances of non-competitive bidding and inflated contract costs suggested procurement irregularities.
- Several projects, including those related to Ajaokuta Steel, failed to comply with the Fiscal Responsibility Act’s accountability and efficiency mandates.
- Ghost Projects:
- Projects lacking documentation or measurable outcomes violate Nigeria’s financial regulations and risk being categorized as fund-diversion schemes.
Call for Forensic Audit
The committee recommended the engagement of independent auditors to examine the Ministry’s 2024 expenditures and contracts. It also requested detailed submissions to address the raised issues.
Concerns About 2025 Budget
The Ministry’s proposed 2025 budget was also scrutinized:
- Personnel Costs: Allocated at 57.2%, indicating most funds are directed to salaries rather than developmental projects.
- Capital Expenditure: Allocated at 34.6%, deemed insufficient for the infrastructure, technology, and modernization investments necessary for industrial growth.
- Lack of Strategic Focus: The absence of detailed expenditure breakdowns raises questions about the Ministry’s alignment with its objectives of driving industrialization.
Legislative Oversight and Recommendations
Co-chairman Gimba emphasized strengthening oversight, noting that several agencies under the Ministry failed to provide adequate information during budget defenses. She stated, “We will not leave any stone unturned in the discharge of our legislative duties.”
Chairman Senator Patrick Ndubueze added:
Nigeria’s progress depends on a solid steel industry. We must prioritize capital projects over salary payments to transform the steel sector into a driver of industrialization.
Conclusion
The committee’s findings underscore the need for comprehensive reforms in the Ministry of Steel Development, particularly in its funding priorities, operational efficiency, and revenue generation. By addressing these issues, the Ministry can better contribute to Nigeria’s industrial and economic growth.