THE FEDERAL MINISTRY OF STEEL DEVELOPMENT is under fire following allegations of mismanagement and budgetary inconsistencies in N2 billion youth training project. The National Assembly Joint Committee on Steel Development, during a heated session on Wednesday, flagged the discrepancies and warned that anti-corruption agencies might intervene if the anomalies are not corrected.
This incident is the latest in a series of controversies surrounding Nigeria’s steel sector, which has long been mired in inefficiencies, mismanagement, and questionable financial practices.
At the heart of the controversy is a project initially listed in the 2024 budget as “Technical Support for SMEs for Training Around Foundry Production in Three Geopolitical Zones.” However, it reappeared in advertisements as “Youth Boot Camp Training”—a rebranding that lawmakers argue is more than just a semantic change.
“This inconsistency raises serious questions,” said Senator Natasha Akpoti-Uduaghan, Vice Chairman of the Senate Committee on Steel Development. “It could be interpreted as misappropriation of funds. If a petition lands on the desk of the EFCC, the ministry could find itself in serious trouble.”
Akpoti-Uduaghan further warned that the misrepresentation of budgetary allocations could undermine public trust and lead to criminal investigations.
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The Chairperson of the House of Representatives Committee on Steel Development, Zainab Gimba, echoed similar concerns.
“We are not here to ambush you, but the procedural lapses in this matter are glaring. This needs to be corrected before it snowballs into something bigger,” Gimba stated.
The Explainer learned that the Federal Ministry of Steel Development has a history of questionable project management and financial mismanagement. One glaring example is the Ajaokuta Steel Complex, initiated in 1979, which was envisioned as a linchpin for Nigeria’s industrialisation. Despite substantial investments—estimated between $6 billion and $10 billion—the facility has yet to produce a single bar of steel.
Over the years, the Nigerian government has continued to allocate significant funds to the complex. For instance, the proposed 2025 budget earmarks N6.21 billion for salaries of Ajaokuta Steel Company workers, an increase from the N4.29 billion allocated in 2024. This is despite the company’s longstanding inactivity.
Critics attribute the prolonged non-performance to bureaucratic inertia and mismanagement. The complex has been reported as over 95% complete multiple times, yet it remains non-operational. The lack of political will and effective oversight has transformed what was meant to be an industrial cornerstone into a protracted financial burden.
Policy analysts say the latest controversy follows a familiar script. “The steel sector has become a breeding ground for inefficiencies and corruption, the rebranding of this project could be an attempt to mask misappropriation, especially since the project’s original scope was more technical and focused on SMEs.”
Steel is the backbone of industrial development, and Nigeria’s vast iron ore reserves present a golden opportunity to reduce reliance on imports. However, the sector has consistently underperformed, with domestic production accounting for less than 0.2% of Africa’s total output, according to the World Steel Association.
Past mismanagement of steel projects has cost Nigeria billions of Naira in wasted resources. A World Bank report in 2021 estimated that Nigeria loses over $3 billion annually to steel imports, a situation exacerbated by the country’s inability to develop a robust local production base.
The rebranding of the N2 billion project has added another layer of doubt about the ministry’s ability to manage critical initiatives. Lawmakers worry that such discrepancies could derail efforts to train the next generation of metalworkers, a sector essential for industrial growth.
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Minister of Steel Development, Shuaibu Audu, admitted that the procurement process for the project was already at an advanced stage. He appealed for permission to proceed with the current framework but failed to provide convincing explanations for the budgetary shift.
“The funds allocated to this project must be utilised transparently, and any deviation from the original intent is unacceptable,” Akpoti-Uduaghan insisted. Lawmakers directed the minister to realign the project with its original budgetary description and ensure that similar projects in the 2025 budget are accurately allocated to their respective agencies.
The Explainer gathered that anti-corruption agencies are likely to scrutinise the ministry’s activities closely if the anomalies are not resolved. The Economic and Financial Crimes Commission (EFCC) has historically taken an interest in cases involving mismanagement of public funds, particularly in high-stakes sectors like steel.
