The Niger Delta Ethnic Nationalities Youth Leaders Council, has called on the Federal Government to revive the Ajaokuta Steel Company, plagued by alleged corruption and mismanagement, to create jobs and drive industrialization for youths.
The Council called on President Bola Ahmed Tinubu to direct the Economic and Financial Crimes Commission (EFCC) to investigate the issues and ensure the company’s proper completion and operationalization.
The Council, in a statement by its President-General, Comrade Terry Obieh, criticized the severe lack of transparency in the management of funds and contracts related to Ajaokuta.
He noted that attempts to obtain details of spending and contracts have been met with obfuscation.
He said: “We, the patriotic citizens of the Federal Republic of Nigeria from the Niger Delta region, are concerned about the persistent neglect of the Ajaokuta Steel Company. This laudable project was built with the proceeds of oil and gas from the Niger Delta in the 70s.
“We can not afford to close our eyes as Niger Delta youths seeing this giant project lying waste for decades now. We hereby call on the Federal Government of Nigeria and the Economic and Financial Crimes Commission (EFCC) to beam their eagle eyes on the longstanding records of corrupt practices, financial mismanagement, and lack of accountability at the Ajaokuta Steel Company in Kogi State.
“The Ajaokuta Steel Company is a critical national asset that was established to drive industrialization and economic development in Nigeria. However, over the decades now, this project has been plagued by massive corruption, misappropriation of funds, and failure to complete construction and operationalize the plant.”
Obieh highlighted that numerous contract renegotiations have inflated the project’s costs from an initial estimate of $1.5 billion to over $8 billion, with minimal results.
He added, “Repeated contract renegotiations and cost overruns: The project has seen numerous contract renegotiations over the years, leading to ballooning costs from the initial estimate of $1.5 billion to over $8 billion currently, with little to show for the investments.
“Lack of transparency and accountability: There has been a severe lack of transparency in the management of funds and contracts related to Ajaokuta. Repeated attempts to uncover the details of spending and contracts have been met with stonewalling and obfuscation.
“Allegations of corruption and misappropriation of funds: There have been widespread allegations of job racketeering, kickbacks, inflated contracts, and diversion of funds meant for the Ajaokuta project over the years. However, these allegations have not been properly investigated, and the culprits have not been held accountable.
“Failure to complete and operationalize the plant: Despite the enormous sums of money invested, the Ajaokuta Steel Company still remains incomplete and non-operational, depriving Nigeria of a critical industrial asset that could drive job creation and economic growth.
“The Niger Delta Ethnic Nationalities Youth Leaders Council, therefore, resolve that:The Federal Government should reinforce the Federal Executive Council’s decision during the administration of former President Umaru Yar’Adua that the EFCC should prosecute the consortium handling the Ajaokuta Steel Company.
“The Federal Government should ignore the international arbitration on Ajaokuta Steel Company and order for the arrest of the owner of the Global Steel Holdings Ltd for a contract scam that led to that arbitration
“All the big sharks in the Federal Ministry of Steel Development, Federal Ministry of Justice, and the Ajaokuta Steel Company, cooking the mischievious international consortia contract negotiations and agreements MUST be fished out and brought to justice
“PlEFCC should conduct a comprehensive investigation into the corrupt practices, financial mismanagement, and lack of accountability that have plagued the Ajaokuta Steel Company project. The findings of this investigation should be made public, and those found culpable should be prosecuted to the fullest extent of the law.
“We want to assure Nigerian youths that Niger Delta Ethnic Nationalities Youth Leaders Council will take any step necessary to follow up on this matter and ensure this giant company is completed.
“Furthermore, we call on President Bola Ahmed Tinubu, GCFR, to direct the EFCC to probe the activities surrounding the Ajaokuta Steel Company and ensure the proper completion and operationalization of the Company, so that it can fulfill its potential as a driver of industrialization and economic development in Nigeria.”
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