The Sole Administrator of the Ajaokuta Steel Company Limited, Mr Sumaila Abdul- Akaba says the amount spent on personnel for security and maintenance of equipment in the company is justifiable.
The Sole Administrator made this known while presenting the performance of the company’s 2022 budget allocation and defense of the 2023 before the committee on Mines and Steel, in Abuja.
In the proposed 2023 budget, the sum of N3.58bn was allocated to the company to cover personnel cost, which was 96.5 percent of the N3.71bn expenditure budget for the steel plant.
Russian Company, Tyazpromoexport built the plant, which was incorporated in 1979.
Mr Abdul-Akaba while explaining the how the allocations were spent, stated that, before the engagement of security personnel, equipment worth billions of naira were stolen from the facility.
According to him, the amount utilised for the payment of some staff who were not on the Integrated Personnel Payroll Information System was meaningful owing to the services they offer.
“Anytime you look at the personnel cost, most of the question people ask is why you are keeping these personnel, Ajaokuta investment is within six billion to eight billion dollars and if you look at the amount we are spending to keep the plants, I don’t think that is too much. Aside that, one of the basic thing we should go to later, if I finish the details of this performance is the security issues.
“We have spent a lot of money also in security. As at today, we have over 220 security guards that are officially not on the payroll of IPPIS.”
The Sole administrator also said that the company engaged the Federal Fire Service, Military and the Department of State Services which the company sees to their welfare.
Mr Abdul-Akaba called for the removal of bureaucracies hindering the operations of the company for work to commence immediately.
“If Ajaokuta project is initiated and completed, fund won’t be a problem but one of the problem is bureaucracy,” he said.
He maintained that Nigeria is not doing enough to utilise the Ajaokuta Steel Company to change the fortunes of the country.
Earlier, the Chairman of the Committee, Ibrahim Ali while noting the place of steel industry in the development of the country, maintained that Nigeria must be proactive to revive the mines and Steel sector.
Some members of the committee raised some key questions regarding the productivity of the steel company and the issue of industrialisation of the country.
They also asked the rationale behind the company taking care of the welfare of the Federal Fire Service and other individuals not captured in the IPPIS with some getting upto five hundred thousand naira.
They also sought proper investigation in to the matter of productivity at the steel plant, as they urged stakeholders to consider all avenues that may be hindering its performance.
Also, during the presentation by the Executive Director of the National Metallurgical Development Centre, Jos, Professor Linus Asuquo, said the sum of 718. 3 million naira has been earmarked for the execution of seven projects.
Professor Asuquo solicited for more funds to address some shortfalls such as; outsourcing of some services as well as carry out its key objective of research and development.
