The National Assembly Joint Committee on Steel Development has raised concerns over multiple breaches of procurement laws in the Ministry of Steel Development’s 2024 budget execution. The committee also called for a forensic audit to investigate alleged “ghost projects” that consumed taxpayer funds without clear evidence of execution.
During the ministry’s 2025 budget defense, Co-chairperson Zainab Gimba highlighted key issues, including funds allocated for vague “capacity building programs” and “skills training initiatives” that showed no measurable impact. She also noted significant increases in administrative costs without corresponding outputs, suggesting possible mismanagement or misallocation of funds.
Gimba identified violations of the Fiscal Responsibility Act and the Public Procurement Act, including non-competitive bidding and inflated contract costs. She emphasized the need for independent auditors to review expenditures and contracts from 2024 to ensure accountability.
The committee expressed disappointment at the lack of detailed information from agencies under the ministry and vowed to strengthen oversight in 2025. Gimba added that the proposed 2025 budget focuses heavily on personnel costs (57.2%), leaving insufficient funds for critical capital investments (34.6%) needed to modernize Nigeria’s steel industry.
Senator Patrick Ndubueze, chairman of the joint committee, stressed the importance of prioritizing infrastructure and technology over salaries. He stated, “Nigeria cannot progress without a strong steel industry. Capital projects must take precedence to drive industrial growth.”
The committee reaffirmed its commitment to ensuring transparency and efficiency in the steel sector, recognizing its pivotal role in Nigeria’s economic development.