Steel Ministry Denies Budget Infractions, Rebuts Allegations by National Assembly

The Ministry of Steel Development has refuted allegations of budget infractions in its 2024 budget implementation, following claims by the National Assembly’s Joint Committee on Steel Development.
In a statement released on Friday, the Permanent Secretary of the Ministry, Dr. Chris Isokpunwa, dismissed accusations of “ghost projects” and procurement irregularities. He clarified that the ministry has been operating under strict adherence to civil service rules and budgetary protocols, despite facing funding challenges.
“As a Federal Government ministry, we work by laid down rules and principles that guide our conduct and functionality. No staff of my ministry can work contrary to the development goals and objectives of the public service,” Isokpunwa said.
He emphasized that the ministry has aligned its operations with the Federal Government’s strategy implementation plan, which ensures compliance with budgetary expenditure protocols. The Permanent Secretary also reiterated the ministry’s commitment to transparency and integrity in all its activities.
The National Assembly’s Joint Committee on Steel Development had earlier flagged several alleged budgetary breaches during its review of the ministry’s 2024 budget. Co-chairman of the committee, Zainab Gimba, accused the ministry of mismanagement, citing the presence of “ghost projects” and inflated administrative costs.
“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,” Gimba said.
She also noted violations of the Fiscal Responsibility Act and the Public Procurement Act, highlighting non-competitive bidding processes, inflated contract costs, and discrepancies in projects related to Ajaokuta Steel.
“Several projects failed to meet the criteria for accountability and efficient resource use. Administrative and recurrent costs significantly increased in 2024 without proportional increases in the ministry’s activities or outputs,” Gimba added.
The committee has called for a forensic audit of the ministry’s 2024 accounts to investigate the alleged irregularities.
In his response, Isokpunwa strongly refuted the allegations, asserting that the ministry has fully complied with the law in its budget implementation. He questioned the source of the accusations, stating that all expenditures have been documented and executed within the framework of the Federal Government’s development objectives.
He assured the public that the ministry remains focused on fulfilling its mandate to develop the steel sector and will continue to operate with integrity and accountability.
The allegations and the ministry’s rebuttal come at a critical time, as the ministry prepares to defend its 2025 budget before the National Assembly. The outcome of the forensic audit, if approved, is expected to shed more light on the controversy.