The CSO Coalition for the Revival of Ajaokuta has expressed strong support for the establishment of a “Special Purpose Trust Fund” dedicated to completing the Ajaokuta Steel Company Limited (ASCL).
By Chimezie Godfrey
The CSO Coalition for the Revival of Ajaokuta has expressed strong support for the establishment of a “Special Purpose Trust Fund” dedicated to completing the Ajaokuta Steel Company Limited (ASCL). This comes as the Coalition presented a memorandum during a public hearing on a bill aimed at creating the Nigerian Ajaokuta Special Trust Fund.
In a memorandum presented to the National Assembly on Thursday, Mohammed Boughei Attah, the National Coordinator of the Coalition, highlighted the importance of the bill in securing the future of the steel plant.
Attah emphasized that the Coalition’s support for the bill was a significant step towards ensuring the revitalization of Ajaokuta Steel and the development of essential infrastructure for the country’s metallurgical industry.
He said, “This is a special presentation by a civil society expert and procurement professional, Mohammed Boughei Attah, National Coordinator, CSO Coalition for the Revival of Ajaokuta, representing a select group of 50 civil society organizations, CSOs spread across Nigeria in collaboration with SOYUZNIK Nigeria, a coalition of over 100 Nigerian engineers trained in Russia under the Federal Government of Nigeria-Russia Federation Knowledge Transfer for the sustenance of Ajaokuta Steel Company since 2018.”
He further elaborated, “As key stakeholders and members of the civil society in Nigeria and beyond, who have been involved in the advocacy for the revival of Ajaokuta Steel Company Limited (ASCL) over the last 20 years, we believe strongly that our position at this Public Hearing will give the Bill the needed attention that Nigerians at the grassroots deserve.”
The Coalition fully supports the bill’s aim to establish a Special Purpose Trust Fund that would facilitate the completion of the Ajaokuta Steel Project, including its metallurgical plant, auxiliary facilities, raw material mines, and supporting infrastructure. The fund would also support the production of liquid steel needed for modern engineering, military armaments, building materials, and more. Additionally, it would enable the training and development of staff to ensure long-term sustainability.
Attah emphasized the strategic importance of the Ajaokuta Steel Company, stating that it would produce steel for various sectors, including standard spare parts production, military armament production, and building materials such as iron rods, structural steel, and allied products.
The memorandum also addressed specific provisions in the bill, notably Section 7, which proposes the creation of an Ajaokuta Special Trust Fund Board of Trustees. The Board would consist of several key stakeholders, including the Minister of Steel Development, an experienced engineer in the relevant field, and a representative of the civil society group, the organized private sector, and others. The Coalition recommended the inclusion of a seasoned procurement professional to help combat procurement-related corruption, which Attah stated accounts for over 70% of corruption in Nigeria’s public sector.
Attah said, “The need for a procurement professional on the Board is vital as a means to assist in addressing procurement-related corruption. As it is established today, procurement corruption accounts for over 70% of total corruption in the public sector. Therefore, we must take all necessary steps in arresting this menace before they occur.”
He also pointed out several ambiguities in the draft bill, including vague language regarding the appointment of the Executive Secretary and the interpretation of “due process.” He called for clearer definitions and the inclusion of specific laws such as the Public Procurement Act 2007, the Presidential Executive Order 5, and others to ensure transparency and accountability.
“Section 14(2)(b) is vague, ambiguous and unclear, which can give room for manipulation and eventual corruption. A position as important as the Executive Secretary of a multinational organization such as the Ajaokuta Special Trust Fund requires a seasoned administrator, a professional in finance, procurement, engineering, and other related fields. The term ‘appropriate person’ will only give room for manipulation,” Attah noted.
The Coalition reiterated their long-standing support for the bill, noting that efforts to establish a Special Purpose Trust Fund had been in contention for years. Previous versions of the Nigeria Metallurgical Industry Bill (NMIB) in 2014, 2016, and 2020 had failed to pass through the National Assembly due to political interests.
Attah concluded, “While we reinstate our support for this Bill once again, we wish to put on record that the issue of the Bill to establish the Special Purpose Trust Fund has been a longstanding point of contention with the then Ministry of Mines and Steel Development. We therefore sincerely hope this Bill shall receive the blessings of our political class for the benefit of all Nigerians.”
Also speaking at the public hearing, Hon. Sanni Egidi, the sponsor of the bill for a Special Purpose Trust Fund for Ajaokuta Steel, addressed the National Assembly, underscoring the significance of the proposed legislation. “It is with great honor and deep appreciation that I stand before you today as the sponsor of this crucial bill aimed at establishing a Special Purpose Trust Fund for the completion of the Ajaokuta Steel Industry,” he stated.
Egidi emphasized that the bill aims to create a Special Trust Fund, a Board of Trustees, and a Project Implementation Committee, all overseen directly by the Presidency.
The bill outlines the total cost of the project, estimated at $2.2 billion, which will cover the reactivation, modernization, and commissioning of the steel plant, the development of associated mines, necessary external infrastructure, and staffing. Hon. Egidi also highlighted the importance of a multi-sectoral approach, stressing that the failure to match infrastructure development with the steel plant’s progress had led to Ajaokuta’s stagnation for decades. “The Nigerian government’s failure to follow these three-prong approach in works and financing is responsible for grounding the Ajaokuta steel project to this day,” he said.
Drawing attention to past missteps, Egidi criticized the 1994 Russian exit from the project, which occurred due to the Nigerian government’s inability to provide the necessary infrastructure and mine development. He also debunked the myth that Ajaokuta’s steel technology was obsolete, affirming that the Russian blast furnace technology remains robust, cost-effective, and highly compatible with Nigeria’s workforce. “This technology is very labour-intensive, greatly to the advantage of our huge manpower reserve,” he noted.
Concluding his speech, Egidi urged members of the National Assembly to seize this historic opportunity to lay the foundation for a self-sufficient industrial economy. “The fate of this Steel Complex and Nigeria’s industrialization is now in the hands of my fellow Honourable Members,” he said. “Together, we can ensure that Ajaokuta Steel becomes a symbol of national pride and economic strength.”
