News

Senate probes Ajaokuta Steel company over $496m settlement

Published

10 months ago

February 28, 2024

The Senate on Tuesday resolved to carry out a thorough investigation on the affairs of Ajaokuta Steel Company Limited and the National Ore Mining Company in Kogi State from 2008 to date.

It planned to unravel the mystery behind the payment of $496m allegedly made to Pramod Mittal, Chairman, Global Infrastructure Holdings Ltd by the Federal Government in September 2022 as a settlement over said contractual disputes.

It also resolved to investigate the circumstances that led to the re-concession of NIOMCO even when the initial Concession Agreement was validly terminated by the Yar’adua Administration with a positive review by the International Chamber of Commerce, London.

Senate’s resolutions to this effect were sequel to a motion sponsored by Senator Natasha Akpoti-Uduaghan ( PDP Kogi Central) and exhaustively debated by many of the Senators.

Akpoti-Uduaghan said the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company located in Kogi State were established sometime in the late 70s by the Federal Government with the potential to put Nigeria on the path of technological and industrial advancement and establish the country as one of the leading exporters of steel products in the world.

She lamented that decades after their establishment, the Ajaokuta steel mill and NIOMCO have remained inoperative and unable to produce steel despite seeming efforts by several administrations due to a lack of earnest political will and bureaucratic corruption.

According to her, Nigeria currently expends about $3.3bn annually on steel imports and is quite saddened that a nation blessed with abundant natural ore resources yet plagued by moribund Ajaokuta and Delta steel that have become conduits pipes for diversion of public funds at the expense of Nigerian tax payers.

She added that there exists an abnormal management structure at the Ajaokuta Steel Complex whereby a Sole Administrator has unilaterally decided upon the steel mill’s corporate affairs for the past 12 years.

She said, “This has further worsened the inefficiency of the moribund company with the recently queried 33bn naira electricity debt incurred by Presidential villa.”

The Senate after debate on the motion, consequently set up a committee to be chaired by Senator Adeniyi Ayodele Adegbonmire ( SAN) with senators Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South) Joel Onowakpa (Delta), Onyesoh Allwell Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Sen Patrick Chukwuba Ndubueze (Imo North), Tokunbo Abiru (Lagos East) and Osita Ngwu (Enugu West) as members.

While the committee is to report back to the Senate in two weeks, they are also to interface with relevant Ministries, Departments and Agencies and other critical stakeholders in the steel sector especially those with interest in Ajaokuta Steel Manufacturing Plant and (all mining company NIOMCO to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2018 to date.

News

Reps Recommends Delisting NECO, UI, Labour Ministry, 21 Others From 2025 Budget

Published

2 minutes ago

December 18, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives Public Accounts Committee (PAC) has called for the removal of the National Examination Council (NECO), University of Ibadan (UI), Federal Ministry of Labour and Employment, and 21 other federal Ministries, Departments, and Agencies (MDAs) from the 2025 budget.

This recommendation follows their repeated failure to account for previous allocations and internally generated revenue.

During an extraordinary session on Wednesday, December 18, 2024, the Committee resolved that these MDAs should be excluded from the budget until they comply with its directives.

Chairman of the Committee, Rep. Bamidele Salam, stressed: “The Financial Regulation empowers the National Assembly to exclude any Ministry, Department, or Agency (MDA) that fails to account for their previous appropriations. As such, the listed MDAs should be excluded from the 2025 budget until they appear before this constitutional committee.”

The decision was prompted by the consistent non-compliance of these MDAs despite multiple summons issued by the Committee to scrutinize their financial operations.

Prominent institutions among those recommended for delisting include hospitals, universities, and federal development agencies. Some of the affected MDAs are:

Federal Medical Centre, Bida
Federal Ministry of Labour & Employment
Ahmadu Bello University Teaching Hospital, Zaria
Nigeria Police Force: Department of Information and Communication Technology
Federal College of Education (Technical), Asaba
Federal College of Education, Yola
Federal Polytechnic Ekowe, Bayelsa State
Abubakar Tafawa Balewa University Teaching Hospital, Bauchi
Federal University of Technology, Minna
Cross River Basin Development Authority
Nigeria Office for Trade Negotiation
National Examination Council (NECO)
Nigeria Police Academy, Wudil
Presidential Amnesty Programme
Galaxy Backbone
Senior Special Assistant to the President on Sustainable Development Goals

Others include the National Health Insurance Authority (NHIA), Nigeria Nuclear Regulatory Authority, National Space Research and Development Agency, Federal Cooperative College (Ibadan), Upper Niger River Basin Development Authority, University of Lagos, University of Ibadan, and Federal School of Survey, Oyo State.

The Committee unanimously recommended that the MDAs in question be delisted from the 2025 budget until they comply with the request for documentation and provide necessary financial clarifications.

News

Reps Call for Revival of NAPAC to Boost Transparency, Accountability

Published

11 minutes ago

December 18, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has called for the revitalization and strengthening of the National Association of Public Accounts Committees (NAPAC) to enhance transparency, accountability, and good governance across Nigeria.

Chairman, House Committee on Public Accounts (PAC), Rep. Bamidele Salam, stated this at the joint sitting of Public Accounts Committees of Senate and House and inauguration of an Adhoc Committee for the reconvening of NAPAC at the National Assembly on Tuesday, emphasised the importance of collaboration among Public Accounts Committees at both federal and state levels.

Formed in 2014, NAPAC comprises 38 chapters nationwide, including the Public Accounts Committees of the Senate, House of Representatives, and all 36 State Houses of Assembly, Rep. Salam noted that the Association has been dormant in recent years, necessitating urgent action to restore its relevance.

He stated, “This Association is a pivotal platform for promoting transparency and accountability in governance. However, in recent times, the Association’s activities have been dormant, necessitating the need for a quick revitalization.

“It is in this context that we are inaugurating this Ad-hoc Committee, tasked with the vital responsibility of reconvening the meeting of NAPAC.”

Salam outlined committee’s objectives, including reviving NAPAC’s activities, adopting innovative strategies to combat corruption, and collaborating with anti-corruption agencies, civil society, and the media.

He also stressed the importance of leveraging partnerships with continental and regional associations such as AFROPAC, WAPAC, and SADCOPAC for capacity building and knowledge sharing.

“The task ahead is daunting, but with collective effort, unwavering commitment, and an unshakeable faith in our nation’s potential, I am confident that we shall succeed,” he added.

In an interaction with journalists, thr Committee chairman, stressed plans to engage with the Auditor General of the Federation and Accountant General of the Federation to address delays in submitting reports on Ministries, Departments, and Agencies (MDAs).

“Of course, Nigerians should expect that we’re going to have more productivity, especially in consideration of the report of the Auditor General,” he said.

He noted that only the 2021 Auditor General’s report is currently before the National Assembly, a situation he described as inconsistent with constitutional provisions. Salam expressed the committee’s determination to ensure Nigeria catches up with the 2022 and 2023 reports by next year.

He added, “We’ll also be able to bring more of these agencies of government in line to ensure that all monies appropriated by the National Assembly are spent judiciously, efficiently, and in a lawful manner.”

News

Nigeria Needs Comprehensive Reforms To Expand Its Tax Base – Speaker Abbas

Published

27 minutes ago

December 18, 2024

Gloria Ikibah

…say we’re consulting stakeholders to address concerns of 4 tax bill

…assure NASS will ensure equity, protection of vulnerable Nigerians

By Gloria Ikibah

Speaker of the House of Representatives Rep. Tajudeen Abbas has said that Nigeria needs “comprehensive tax reforms to broaden the nation’s tax base.

Speaker Abbas stated this while delivering the votes of thanks during the presentation of the 2025 budget to a joint session of the National Assembly by President Tinubu, said that the leadership of the House has commenced a series of engagements with the relevant stakeholders to address the concerns raised on the four tax reform bills transmitted to the National Assembly by President Bola Ahmed Tinubu.

He reiterated the commitment of the House, and indeed the National Assembly to ensure equity and the protection of vulnerable Nigerians.

He said, “Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 per cent and 14.1 per cent, respectively.

“Even our VAT collection efficiency – at approximately 20 per cent – is notably below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.”

“Addressing these challenges requires urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration and reduce reliance on borrowing.”

Speaker Abbas, therefore, stated the preparedness of the National Assembly to work with the President Tinubu-led administration towards achieving the required reforms.

“The National Assembly will continue to work with your administration to ensure that such reforms are equitable, effective, and considerate of the needs of vulnerable populations.

“To this end, we have engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation. I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes”, he added

According to Speaker Abbas, the reforms by the Tinubu administration have “disrupted the status quo, sparking resistance from vested interests.”

He added: “Yet, these courageous measures underscore your resolve to prioritise the welfare of Nigerians.”

“The National Assembly stands ready to support these reforms through legislative backing and to facilitate public engagement for greater understanding and acceptance.”

He stated that collaboration between the three arms of the government remains essential to achieving the shared objectives.