N’assembly panel queries ‘ghost projects’ in steel development ministry

The joint national assembly committee on steel development has queried what it describes as “ghost projects” in the federal ministry of steel development.

The panel alleged that these projects were “designed to divert public funds”.

The committee handed down its query at the weekend when Shuaibu Audu, minister of steel development, appeared before it to defend his ministry’s 2025 budget.

Zainab Gimba, chair of the house of representatives committee on steel development, said some infractions such as violations of the fiscal responsibility act in the execution of the ministry’s 2024 budget were noticed.

“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,” the lawmaker said.

“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.

“There are ghost projects which are a direct violation of Nigeria’s financial regulations, which require all expenditures to be backed by documentation and outcomes.”

Patrick Ndubueze, chairman of the senate committee on steel development, said the nation assembly is concerned about putting Nigeria where it ought to be in steel development.

“Nigeria cannot make much progress without a solid steel industry. We have to place emphasis on capital projects, not payment of salaries,” he said.

“For us to do well, we cannot be repeating the same mistakes every time. We expected that the ministry would have improved by now.”

Natasha Akpoti-Uduaghan, a member of the committee, wondered how the minister arrived at the sum of $2 billion to revamp the Ajaokuta Steel Complex without completing a proper audit.

In responding, the minister said he would address the concerns raised by the committee.