Amid concerns raised by National Assembly members, the Permanent Secretary of the Ministry of Steel Development, Dr. Chris Isokpunwa, has denied allegations of budget infractions in the ministry’s 2024 budget implementation.
Isokpunwa responded to the allegations, addressing claims of “ghost projects” and procurement irregularities.
He clarified that the ministry’s limited funds hindered the effective execution of planned projects for the year.¹
The response follows concerns raised by the National Assembly’s Joint Committee on Steel Development on Friday January 17, during its review of the 2024 budget implementation.
The committee drew attention to several alleged violations of procurement laws and raised concerns about the legitimacy of specific projects overseen by the ministry.
Rep. Zainab Gimba, co-chairman of the committee, demanded a forensic audit of the Ministry of Steel Development’s 2024 accounts, alleging the existence of “ghost projects” that may have diverted public funds.
Gimba said: “A first-hand appraisal of the 2024 submissions shows some budget infractions as funds allocated for unspecified ‘capacity-building programmes’ and ‘skills training initiatives’ in the steel sector show no evidence of execution or impact.
“These projects risk being classified as ghost projects designed to divert public funds.
“Administrative and recurrent costs significantly increased in 2024 without proportional increases in the ministry’s activities or outputs, a possible indicator of mismanagement or misallocation of funds.”
She noted legal violations under the Fiscal Responsibility Act, which mandates the efficient use of public resources and accountability for project outcomes.
“Several projects, especially related to Ajaokuta Steel, failed to meet these criteria.”
Gimba further highlighted additional breaches of the Public Procurement Act, citing examples of non-competitive bidding and excessive contract costs that indicate significant deviations from established procurement guidelines.
She added: “There are ghost projects which are a direct violation of Nigeria’s Financial Regulations, which require all expenditures to be backed by documentation and outcomes.”
Isokpunwa expressed surprise about the source of the allegations and reiterated that the Ministry of Steel Development has fully adhered to the established civil service rules that govern budget execution.
He said: “As a Federal Government ministry, we work by laid down rules and principles that guide our conduct and functionality, so no staff of my ministry can work contrary to the development goals and objectives of the public service.”
Isokpunwa further emphasized that the ministry has adhered to the Federal Government’s strategy implementation plan, ensuring strict compliance with budgetary expenditure protocols.
He underscored the Ministry’s commitment to transparency and integrity in all its operations.
Isokpunwu stressed that the Ministry of Steel Development remains committed to fulfilling its statutory responsibilities with integrity, and has complied with all applicable laws and guidelines in the implementation of its budget for 2024.
Persecondnews recalls that the ministry, which was formerly under the Ministry of Mines and Steel, was created when the old ministry was split in two by President Bola Tinubu to create the Ministry of Solid Minerals Development and the Ministry of Steel Development.
The Ministry of Steel Development, headed by Prince Shuaibu Abubakar Audu, is responsible for formulating policies, attracting foreign investment, and implementing programs to develop the steel industry in Nigeria.
The Ministry of Solid Minerals Development, led by Dr. Dele Alake, is focused on developing the solid minerals sector, including mining and quarrying.
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