So far, the Federal Government has spent at least, N29 billion on personnel cost of the moribund Ajaokuta Steel Complex,  despite not producing a sheet of steel, year-in, year-round.
Findings have revealed that the Federal Government allocated over N3 billion to cover personnel costs at the Ajaokuta Steel Company each year under the regime of President Muhammadu Buhari, despite the company’s idleness.
Data collated from the appropriation bill from 2016 to 2023 available on the website of the Budget Office of the Federation has made certain revelations.
Between 2016 and 2023, a total of N29.35bn has been allocated to cover personnel costs for the Ajaokuta Steel Complex.
In 2016, the Federal Government budgeted N3.55 billion for personnel cost, which was 90.79 per cent of N3.91bn total expenditure budget of the steel plant.
Also for the 2017 budget records, personnel cost allocation was N3.84bn, which was 89.92 per cent of the total allocation of N4.27 billion.
The sum of N3.76bn was allocated to cover personnel cost at Ajaokuta Steel Plant in 2018. This was 89.74 per cent of the total expenditure budget of N4.19 billion.
The allocation in 2019 for personnel was N3.26 billion, which was 90.53 per cent of the total allocation of N3.59 billion.
In 2020, the personnel cost was N3.53 billion, which was 94.64 per cent of the total allocation for the moribund company.
A further breakdown showed that salaries and wages cost N43.3 million, whereas allowances and social contribution took N5.4m.
For 2021, the personnel cost was N3.89 billion, which was 92.18 per cent of the total expenditure budget of N4.22 billion.
A further breakdown showed that salaries and wages cost N3 billion; allowances and social contribution took N846.5 million; uniforms and other clothing took N2.5 million; while refreshments and meals cost N1.8 million.
Fund was budgeted for only one project in 2021, which was the construction/provision of water facilities for N80 million.
In this year, 2022, the sum of N3.94 billion was allocated for personnel cost, which was 88.14 per cent of the total N4.47 billion expenditure budget for the Ajaokuta company.
Funds were also budgeted for certain projects such as the maintenance of power facilities for N53.5 million, construction/provision of water facilities for N87.7 million, and lighting and security of Ajaokuta steel plant at N27.5 million.
For the proposed 2023 budget, the Federal Government allocated N3.58 billion to cover personnel cost, which was 96.5 per cent of the N3.71 billion expenditure budget for the steel plant.
It would be recalled that Russia’s Tyazpromoexport built the plant, which was incorporated in 1979, from records, but despite the regular budget, the steel company is yet to commence full operations in over 42 years, with the government making failed attempts at privatisation and concessioning.

By: Corlins Walter