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Senate probes Ajaokuta Steel company over $496m settlement

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.
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Just in: Shettima jets out to attend Senegal’s independence

Vice President Kashim Shettima has departed Abuja for Dakar, Senegal for official assignment.
The VP is expected to represent President Bola Ahmed Tinubu at the West African nation’s 65th Independence Anniversary celebrations.
Senegal marks its Independence Day on April 4 each year, commemorating its liberation from French colonial rule in 1960.
The annual celebration is a significant event featuring national parades, cultural displays, and ceremonies highlighting the country’s achievements and unity.
A statement issued on Thursday by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said Shettima’s participation followed an official invitation from Senegalese President, Bassirou Diomaye Faye.
This underscored the strong diplomatic and economic ties between Nigeria and Senegal.
The two nations share longstanding relations, particularly within the Economic Community of West African States (ECOWAS), fostering cooperation on regional security, trade, and development initiatives.
The event is expected to reaffirm Senegal’s commitment to democratic governance and regional cooperation.
Vice President Shettima is scheduled to return to Nigeria immediately after the one-day celebrations, continuing his engagements in national development and diplomatic outreach.
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Just in: “Ignore rumour mongers, there was no time I collapsed “-Wike asserts

Federal Capital Territory FCT minister, Nyesom Wike on Thursday dismissed social media reports that he collapsed last week, describing the reports as the handiwork of rumour mongers trying to score cheap political points.
Wike spoke after he inspected four ongoing projects in the territory, including the International Conference Centre ICC.
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CJ transfers Natasha’s case to Justice Nyako

The Chief Judge of the Federal High Court, Justice John Tsoho, has reassigned the suit filed by Senator Natasha Akpoti-Uduaghan against Senate President Godswill Akpabio and others to Justice Binta Nyako.
The case, which was initially handled by Justice Obiora Egwuatu, will now be heard afresh by Justice Nyako following Egwuatu’s withdrawal from the matter. His decision came after allegations of bias were reportedly raised by Akpabio, the third defendant in the suit.
Justice Egwuatu withdrew from the case on March 25, citing concerns over judicial integrity.
“Justice is rooted in confidence in the court. Once a litigant expresses his belief that there is bias or likelihood of bias on the part of the judge, it will not be in the interest of justice for the judge to continue,” he stated.
He forwarded the case file to the Chief Judge for reassignment.
Senator Akpoti-Uduaghan, who represents Kogi Central Senatorial District, had filed the lawsuit to halt an investigation into her alleged misconduct by the Senate Committee on Ethics, Privileges, and Public Petitions. She had sought an interim injunction to prevent the committee from proceeding with disciplinary actions against her.
Justice Egwuatu previously issued an order on March 4 declaring Akpoti-Uduaghan’s suspension by the Senate null and void. However, on March 19, he set aside a portion of his ruling after hearing arguments from both sides. The Senate had filed a motion urging the court to vacate the order, arguing that it interfered with its legislative duties and could lead to a constitutional crisis.
During legal proceedings, the Senate’s lawyer, Chikaosolu Ojukwu, argued that the court’s order restrained the Senate from fulfilling its constitutional responsibilities, while Akpoti-Uduaghan’s counsel, Michael Numa, opposed the motion, describing it as a disregard for the court’s authority. He urged the court to dismiss the Senate’s application and take disciplinary action against the defendants for contempt.
Akpoti-Uduaghan also filed a contempt charge, asserting that her suspension was a deliberate violation of the court’s interim injunction. She maintained that the court’s directive was duly served on the defendants, but they proceeded with actions in defiance of the ruling.
Nigeria’s 1999 Constitution (as amended) grants the National Assembly the authority to manage its internal affairs, including disciplining its members. However, this power is not unlimited. It must be exercised in accordance with constitutional provisions, due process, and the rule of law.
The principle of separation of powers, outlined in Section 4 for the legislature, Section 6 for the judiciary, and Section 5 for the executive, ensures that each arm of government functions independently without interference. However, courts have the authority to review legislative actions if they infringe on fundamental rights or violate existing laws.
Judicial rulings have established that while legislatures hold disciplinary authority, their actions must align with the principles of natural justice, particularly the right to a fair hearing, as outlined in Section 36 of the Constitution. The outcome of this case could clarify the extent of legislative immunity and determine whether courts can override Senate disciplinary actions when due process is at stake.
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