The Niger Delta Ethnic Nationalities Youth Leaders Council has called on the Federal Government and the Economic and Financial Crimes Commission (EFCC) to launch a thorough investigation into alleged corruption in the management of the Ajaokuta Steel Company, which they believe has been a source of mismanagement and misuse of funds for decades.
In a statement released on Friday by the group’s President-General, Comrade Terry Obieh, the Council emphasized that reviving the steel company is crucial for job creation and industrial growth in Nigeria.
However, the group expressed deep concern over what it described as years of massive corruption, financial misappropriation, and the failure to operationalize the plant despite substantial investments.
“We, the patriotic citizens of the Federal Republic of Nigeria from the Niger Delta region, are concerned about the persistent neglect of the Ajaokuta Steel Company. This laudable project was built with the proceeds of oil and gas from the Niger Delta in the 70s. We can not afford to close our eyes as Niger Delta youths seeing this giant project lying waste for decades now. We hereby call on the Federal Government of Nigeria and the Economic and Financial Crimes Commission (EFCC) to beam their eagle eyes on the longstanding records of corrupt practices, financial mismanagement, and lack of accountability at the Ajaokuta Steel Company in Kogi State.
“The Ajaokuta Steel Company is a critical national asset that was established to drive industrialization and economic development in Nigeria. However, over the decades now, this project has been plagued by massive corruption, misappropriation of funds, and failure to complete construction and operationalize the plant,” it said.
The group outlined several key concerns, including scandals reportedly involving Global Steel Holdings Ltd, alleging that it has history of contract scams in multiple countries, raising doubts about the firm’s integrity.
The group listed its other concerns to include: “Repeated contract renegotiations and cost overruns: The project has seen numerous contract renegotiations over the years, leading to ballooning costs from the initial estimate of $1.5 billion to over $8 billion currently, with little to show for the investments.
Lack of transparency and accountability: There has been a severe lack of transparency in the management of funds and contracts related to Ajaokuta. Repeated attempts to uncover the details of spending and contracts have been met with stonewalling and obfuscation.
Allegations of corruption and misappropriation of funds: There have been widespread allegations of job racketeering, kickbacks, inflated contracts, and diversion of funds meant for the Ajaokuta project over the years. However, these allegations have not been properly investigated, and the culprits have not been held accountable.
Failure to complete and operationalize the plant: Despite the enormous sums of money invested, the Ajaokuta Steel Company still remains incomplete and non-operational, depriving Nigeria of a critical industrial asset that could drive job creation and economic growth.”
The Niger Delta Youth Leaders Council urged the Federal Government to revisit the decision made during the administration of former President Umaru Yar’Adua to prosecute the consortium managing the Ajaokuta Steel project.
It also called for the arrest of the owner of Global Steel Holdings Ltd for alleged contract fraud and the prosecution of officials within the Federal Ministries of Steel Development and Justice for their roles in mishandling the project.
The group urged the EFCC to conduct a full investigation into the corruption and mismanagement that have plagued the project, and for those responsible to face legal consequences.
They further called on President Bola Ahmed Tinubu to intervene, directing the EFCC to ensure the completion and operationalization of the steel company, which they believe could be a catalyst for industrialization and economic development in Nigeria.
