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The Minister of Steel Development, Mr. Shuaibu Audu, on Wednesday, revealed that the technical audit on the Ajaokuta Steel Company Limited will start early February.
Recall that the Federal Government signed a Memorandum of Understanding in September 2024 with the original builders of the Ajaokuta Steel Plant, Tyazhpromexport, and their consortium members, Novostal M and Proforce Manufacturing Limited, to conduct the technical audit.
The audit will lay the foundation for the rehabilitation, completion, and operation of the steel plant and the National Iron Ore Mining Company in Kogi State, Nigeria.
The minister, while appearing before the National Assembly Joint Committee on Steel Development to defend the ministry’s 2024 budget and the 2025 Appropriation, reassured the committee and urged for patience.
Senator Natasha Akpoti-Uduaghan, a member of the joint panel and representative of the Kogi Central Senatorial District where the project is located, asked the minister to provide a specific date for the start of the technical audit.
Akpoti-Uduaghan said, “Hon Minister can I ask a question, please? When was the MOU entered into? Which month? Can you tell us the month that the MOU on Ajaokuta was entered?”
In response, the minister informed the panel that the document was signed in September of the previous year.
Akpoti-Uduaghan then questioned why the ministry had taken no action four months after the MOU was signed.
She said, “We are now approaching the end of January. When will the technical audit start? When will it start? Because to me, I believe we should tackle that project wholesomely. Yes, we need to start with a technical audit so that the buildup of repairs will commence immediately.
“Can you tell us when we would expect the Russians with their partners to commence the technical audit because time is going.”
Replying the minister said, “I had a conversation with the Permanent Secretary this morning (Wednesday) on the commencement date.”
He then instructed the Permanent Secretary, Dr. Chris Osa-Isokpunwu, to update the panel on the start of the technical audit.
Osa-Isokpunwu said, “Immediately after the signing of the Memorandum of Understanding, the ministry commenced the procurement process for the technical and financial audit. Advertisements were made, time was given. The stage we are now is preparation to present it to the Federal Executive Council for approval. Once that presentation is made and the Federal Executive Council approves that project, then the technical audit will start.
“What I would say at this point is that as soon as we get the ‘no objection’ to proceed to the Federal Executive Council by the Bureau of Public Procurement, we will take the memo to the Federal Executive Council. That will be based on the availability of slot for the presentation of memos at FEC. I do not run the Secretariat of FEC.
“However, once the Bureau of Public Procurement issues us the certificate of no objection, within 48 hours after, the Honourable Minister will transmit the memo to the Secretariat of FEC.”
Akpoti-Uduaghan inquired about when the BPP would send the ‘no objection’ to the ministry, to which the Permanent Secretary replied that only the Director General of the BPE, Ayodeji Gbeleyi, could provide an answer.
Still unsatisfied with the response, Akpoti-Uduaghan asked, “How long have you been waiting for that ‘no objection’ from BPP? I need to know the timeline. How long has it been? Did you just submit the proposal last week? Or last month? Or two months ago? We need to know. Maybe it’s BPP we are going to hold responsible for delay of process.”
Osa-Isokpunwu responded, “I’m not familiar with the processes of the Bureau of Public Procurement. We submitted our request for ‘no objection’ about two months ago. So Chairman, I don’t know if I can help you.”
The minister promptly defended the Permanent Secretary, acknowledging that the ministry has been slow in addressing the matter.
Audu said, “Mr. Chairman and distinguished members, I think the feedback from the joint committee is loud and clear. The speed at which we are going through the process of getting a ‘no objection’ from BPP is too slow. I think that is the message that I’m hearing from the committee members. The feedback has been heard very loud and clear. I can assure you that I’ll continue to put the permanent secretary under a lot of pressure for us to get out the ‘no objection’.
“Perhaps, the methods and the way we’ve been following up is inadequate. We are going to put more gas to the pedal to ensure that the ‘no objection’ comes out. This is because it’s very, very important to Nigerians for the technical audit to start, particularly with the original builders and their Nigerian representatives.
“We have a lot more work to do in that regard. The Perm Sec has heard, directors of the ministries have heard very loud and clear that the joint committee on steel is unhappy with the pace at which we are processing the ‘no objection’ from BPP. So I want to appeal to your further patience.
“In the next few days, I can assure you that we’re going to ramp up efforts to at least get out the ‘no objection’. Today is 22nd of January. I believe before the end of the month we will get it. I’ll do everything humanly possible to ensure that it comes out so that we can get these things going. So I want to assure you that I’ll put the ministry under pressure. I’ll continue to put the Permanent Secretary under pressure.
“Everybody can hear me. Nigerians can hear me. The directors are all here. The person that liaises with BPP is here. The Permanent Secretary is here. All the most senior memberships are here. The pace at which we are getting, we are processing this BPP ‘no objection’ is too slow. We need to bring it out, latest by the end of January and we hope to get the FEC approval immediately.”
