The Permanent Secretary of the Ministry of Steel Development, Dr Chris Isokpunwa, has rejected accusations of budget infractions in the ministry’s 2024 budget implementation, following allegations raised by members of the National Assembly.
In a statement on Friday, Isokpunwa addressed the claims of “ghost projects” and procurement irregularities, clarifying that the ministry has not had sufficient funds to effectively carry out its planned projects for the year.
He expressed confusion over the source of the allegations and reiterated that the Ministry of Steel Development has fully adhered to the established civil service rules that govern budget execution.
“As a Federal Government ministry, we work by laid down rules and principles that guide our conduct and functionality, so no staff of my ministry can work contrary to the development goals and objectives of the public service,” the permanent secretary stated.
Isokpunwa further emphasised that the ministry has followed the Federal Government’s strategy implementation plan, which ensures strict compliance with budgetary expenditure protocols.
He underscored the ministry’s commitment to transparency and integrity in all its operations.
The statement comes after the National Assembly’s Joint Committee on Steel Development raised concerns during its review of the 2024 budget implementation.
The committee highlighted several alleged breaches of procurement laws and questioned the legitimacy of certain projects under the ministry’s watch.
Co-chairman of the committee, Zainab Gimba, called for a forensic audit of the ministry’s 2024 accounts, citing what she described as “ghost projects” that might have siphoned public funds. During the ministry’s 2025 budget defense session in Abuja, Gimba pointed out various discrepancies in the ministry’s 2024 budget submissions.
“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.
“These projects risk being classified as ghost projects designed to divert public funds. Administrative and recurrent costs significantly increased in 2024 without proportional increases in the ministry’s activities or outputs, a possible indicator of mismanagement or misallocation of funds,” she added.
She further noted legal violations under the Fiscal Responsibility Act, which mandates the efficient use of public resources and accountability for project outcomes.
“Several projects, especially related to Ajaokuta Steel, failed to meet these criteria,” Gimba said.
Additionally, Gimba outlined further violations of the Public Procurement Act, including instances of non-competitive bidding and inflated contract costs, suggesting breaches of procurement guidelines.
“There are ghost projects which are a direct violation of Nigeria’s Financial Regulations, which require all expenditures to be backed by documentation and outcomes,” Gimba added.
In response, Isokpunwa strongly refuted these allegations, stressing that the Ministry of Steel Development remains committed to fulfilling its statutory responsibilities with integrity, and has complied with all applicable laws and guidelines in the implementation of its budget for 2024.
