By Abigail Philip David
The Ministry of Steel Development has dismissed allegations of budgetary misconduct in its 2024 budget implementation, following claims raised by the National Assembly.
In a statement on Friday, the Permanent Secretary of the Ministry, Dr. Chris Isokpunwa, denied accusations of “ghost projects” and procurement irregularities, asserting that the ministry operates strictly within the rules governing public service and budget execution.
He clarified that insufficient funding had hindered the ministry’s ability to fully implement its planned projects for the year and questioned the basis of the allegations.
“As a Federal Government ministry, we operate under established rules and principles that guide our conduct and functionality. No staff of this ministry can act contrary to these objectives,” Isokpunwa said.
He reaffirmed the ministry’s commitment to transparency and adherence to the Federal Government’s strategy implementation plan, which ensures compliance with budgetary expenditure protocols.
The statement follows concerns raised by the National Assembly’s Joint Committee on Steel Development during its review of the 2024 budget implementation. The committee alleged breaches of procurement laws and questioned the legitimacy of certain projects under the ministry’s purview.
Co-chairman of the committee, Zainab Gimba, called for a forensic audit of the ministry’s 2024 accounts, citing concerns over “ghost projects” and mismanagement of funds.
Gimba pointed to discrepancies in budget submissions, highlighting allocations for unspecified “capacity-building programmes” and “skills training initiatives” in the steel sector that showed no evidence of execution or impact.
“These projects risk being classified as ghost projects intended to divert public funds. Additionally, administrative and recurrent costs rose significantly in 2024 without corresponding increases in the ministry’s activities or outputs, raising concerns of mismanagement or misallocation,” Gimba stated.
She also noted potential violations of the Fiscal Responsibility Act, which mandates efficient use of public resources and accountability for project outcomes.
“Projects related to Ajaokuta Steel, for instance, failed to meet these criteria,” she added.
Gimba further accused the ministry of breaching the Public Procurement Act through instances of non-competitive bidding and inflated contract costs, suggesting violations of procurement guidelines.
“There are ghost projects, which directly violate Nigeria’s Financial Regulations that require all expenditures to be documented and justified by outcomes,” she said.
In response, Isokpunwa strongly refuted the allegations, maintaining that the Ministry of Steel Development has complied with all laws and guidelines in its budget implementation.
“The ministry remains committed to fulfilling its statutory responsibilities with integrity and transparency,” he said.
