The Permanent Secretary of the Ministry of Steel Development, Chris Isokpunwa has refuted allegations of budget infractions in the ministry’s 2024 budget implementation, which were raised by members of the National Assembly.
In a statement issued on Friday, Isokpunwa addressed claims of “ghost projects” and procurement irregularities, clarifying that the ministry has not received adequate funding to effectively carry out its planned projects for the year. He expressed surprise at the source of the accusations and reiterated that the Ministry of Steel Development has fully adhered to the civil service rules governing budget execution.
“As a Federal Government ministry, we operate by established rules and principles that guide our conduct, so no staff in my ministry can act contrary to the development goals and objectives of the public service,” Isokpunwa said.
He also emphasized that the ministry has followed the Federal Government’s strategic implementation plan, ensuring strict compliance with budget expenditure protocols. Isokpunwa assured that the Ministry is committed to transparency and integrity in all of its operations.
This statement follows concerns raised by the National Assembly’s Joint Committee on Steel Development during its review of the 2024 budget implementation. The committee flagged alleged breaches of procurement laws and questioned the legitimacy of certain projects under the ministry’s oversight.
Co-chairman of the committee, Zainab Gimba, called for a forensic audit of the ministry’s 2024 accounts, citing what she referred to as “ghost projects” that could have diverted public funds. During the ministry’s 2025 budget defense session in Abuja, Gimba pointed out several discrepancies in the ministry’s 2024 budget submissions.
“A first-hand review of the 2024 submissions reveals budget infractions, such as funds allocated for unspecified ‘capacity-building programmes’ and ‘skills training initiatives’ in the steel sector, with no evidence of execution or impact,” Gimba said. “These projects risk being labeled as ghost projects designed to divert public funds. Additionally, administrative and recurrent costs significantly increased in 2024, without a corresponding rise in the ministry’s activities or outputs, which could indicate mismanagement or misallocation of funds,” she added.
Gimba also noted violations under the Fiscal Responsibility Act, which mandates the efficient use of public resources and accountability for project outcomes. “Several projects, particularly those related to Ajaokuta Steel, failed to meet these criteria,” Gimba explained.
Furthermore, Gimba highlighted additional violations of the Public Procurement Act, including instances of non-competitive bidding and inflated contract costs, suggesting breaches of procurement guidelines.
