The Nigerian Ministry of Steel Development, in partnership with the Senate and House of Assembly Joint Committees on Steel Development, has urged the Ministry of Budget and Economic Planning to boost the 2025 budgetary allocation for the steel sector.
This request aims to provide the necessary funding for the ministry to execute its strategic plans for the industry effectively.
The call was made after the Minister of Steel Development presented the ministry’s 2025 budget to the National Assembly, seeking an increase to enable the ministry to meet its optimal performance.
The Ministry of Steel Development received a 2025 budgetary allocation of N24.029 billion, up from its initial request of N315 billion.
The ministry is, however, seeking the collaboration of the National Assembly Joint Committee for additional proposed intervention totalling a minimum of N33.031 billion for immediate priority projects, based on the committee’s declaration of a state of emergency on scrap collation centres.
The National Assembly Joint Committees granted the Ministry of Steel Development’s request for an increase in its 2025 budget due to the critical role the steel sector plays in growing and diversifying the economy and the Joint Committees’ move to declare a state of emergency on scrap metal.
The Chairman of the Senate Committee of Steel Development, Senator Patrick Ndubueze, had moved for the declaration of a state of emergency on scrap metal to safeguard government infrastructure and boost steel production in the country.
Following the adoption of the 2025 Budget for the Ministry of Steel Development, the Chairman of the House Committee, Mrs Zainab Gimba, moved a motion for a meeting between the National Assembly Joint Committees on Steel Development, the Ministry of Steel Development and the Minister of Budget and Economic Planning to discuss scaling up the 2025 Budget of the Ministry of Steel Development.
“When the Joint Committee of this house of the National Assembly decided to declare a state of emergency on scrap collection, I think this budget cannot go anywhere in implementing projects.
“So, I am now moving a motion that we invite the DG and the Minister of Budget and Economic Planning to interface with the Ministry and the Joint Committee to see how the budget of the Ministry of Steel Development and other relevant agencies will be scaled up to enable them to achieve what is expected of them,” Mrs Gimba said.
Seconding the motion, Senator Natasha Akpoti-Uduaghan, Deputy Chairman of the Senate Committee on Steel Development said that “the scaling up of the ministry’s budget was a necessity for the revival of the entire steel sector, Ajaokuta Steel Plant, and the National Iron Ore Mining Company, Itakpe.
“The Joint Committee called on the Minister of Budget to ask for the increase of the 2025 budgetary provision for the Ministry of Steel due to the necessity of the sector to the entire country’s development.
“And also, in consideration of the emergency being placed on scrap collection by the distinguished chairman of the committee of steel to avoid further destruction of our infrastructure. Therefore, we ask that there is a massive increase in the 2025 budget in the Ministry of Steel Development,” Sen. Akpoti-Uduaghan said.
Presenting the 2025 budget of the ministry before the National Assembly, the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, said that the main target for the ministry for 2025 is to attract foreign direct investment (FDI), boost government revenue, and increase the government’s foreign exchange from earnings within the steel sector, revive the entire steel sector, and complete the revitalisation of the Ajaokuta Steel Complex and the National Iron Ore Mining Company (NIOMCO), Itakpe.
The minister, however, noted that these cannot be achieved without the collaboration of the National Assembly.
“Given the strategic importance of the steel sector in driving industrialisation, job creation, and FDI, it is imperative that the ministry receives an enhanced allocation to fund its ambitious projects for 2025.
“We made a request for 315 billion Naira, of which we were given a capital budget appropriation of 8.3 billion Naira, a very far cry from what is required to get some of the projects off the ground and also increase the valuation of the assets in the process of privatisation.
“For the purpose of the Joint Committee, we are asking for additional proposed intervention totalling 33.031 billion naira for priority projects, and also based on the declaration of a state of emergency on scrap collation centres,” Prince Audu stated.
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