In a notable move, the National Assembly has increased the budgetary allocation for the dormant Ajaokuta Steel Company from the proposed N4.45 billion to N5.18 billion in the approved 2024 budget. This surge of N730 million aims to support the government’s efforts to revive the inactive steel plant, which has remained dormant for over four decades.
Remarkably, the augmented budget includes community projects beyond Kogi state, where the steel plant is located.
A detailed analysis reveals that personnel costs dominate the allocation, constituting over 83 per cent of the N5.18 billion budget. A substantial portion, approximately N4.3 billion, is designated for maintaining personnel at the moribund steel plant, with salaries accounting for N2.62 billion.
However, the approved budget introduces seven new capital projects, featuring community-centric initiatives such as supplying farm feed and materials in Lagos, entrepreneurial development training in Kwara North, and providing solar streetlights in rural communities in Niger state.
Notably, approximately N400 million, over half of the new addition, is earmarked for solar streetlights in a single senatorial district—Niger East, represented by Mr. Mohammed Musa of the All Progressives Congress (APC).
Beyond the Ajaokuta Steel Company’s direct allocation, other notable budget allocations include N4 billion for the concession of the steel plant by the Ministry of Steel Development.
The ministry also has a separate N200 million budget to revive Ajaokuta Steel Company Limited (ASCL) and National Iron Ore Mining Company (NIOMCO).
Despite decades of unsuccessful attempts at privatization and concession, the federal government remains committed to reviving Ajaokuta Steel Company.
Recent statements from the Minister of Steel Development, Shuaibu Audu, highlighted the government’s pursuit of approximately N35 billion in funding from financial institutions to kickstart the moribund steel plant.
