Dr. Chris Isokpunwa, who is the Permanent Secretary of the Ministry of Steel Development, has denied claims that the ministry mismanaged its budget for 2024. These accusations were made by some members of the National Assembly, who raised concerns during a review of the ministry’s budget.
In a statement released on Friday, Isokpunwa addressed the allegations, which included claims of “ghost projects” (projects that are said to exist but do not actually have any real activity or funding) and irregularities in how contracts were awarded. He explained that the ministry has not received enough funding to successfully carry out all of its planned projects for the year.
Isokpunwa expressed his surprise at the source of these accusations and assured everyone that the Ministry of Steel Development has been following all the necessary rules and guidelines that are supposed to be followed when managing the budget. He stated, “As a Federal Government ministry, we operate according to established rules and principles. No one in my ministry would act against the goals and objectives of public service development.”
He also pointed out that the ministry has been following a specific plan set by the Federal Government, which is designed to ensure that all spending is done correctly and in accordance with established protocols. He emphasized that the ministry is dedicated to being transparent and honest in all its operations.
These statements came after the National Assembly’s Joint Committee on Steel Development raised some serious concerns while reviewing the 2024 budget. The committee claimed that there were several violations of procurement laws and questioned whether some projects were legitimate.
Zainab Gimba, the co-chairwoman of the committee, called for a detailed audit of the ministry’s financial activities for 2024. She mentioned that there seemed to be “ghost projects” that could have misused public funds. During a session where the ministry defended its budget for 2025 in Abuja, Gimba pointed out various inconsistencies in the ministry’s budget for 2024.
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She said, “A close examination of the 2024 budget shows some problems, such as money allocated for vague ‘capacity-building programs’ and ‘skills training initiatives’ in the steel sector, which do not seem to have been carried out or had any real impact.” She warned that these projects might be examples of “ghost projects” meant to misdirect public funds. Gimba also noted that administrative costs had risen significantly in 2024 without a corresponding increase in the ministry’s activities or results, which could indicate poor management or misuse of funds.
Gimba further mentioned that there were violations of the Fiscal Responsibility Act, which requires that public resources be used efficiently and that there be accountability for the results of projects. She pointed out that several projects, particularly those related to Ajaokuta Steel, did not meet these standards.
Additionally, Gimba highlighted further violations of the Public Procurement Act, which includes issues like not having competitive bidding and inflated contract prices, suggesting that the ministry did not follow the proper procurement guidelines.
“There are ghost projects, which directly violate Nigeria’s Financial Regulations that require all spending to be supported by proper documentation and evidence of outcomes,” Gimba added.
In response to all these claims, Isokpunwa firmly rejected the allegations. He reiterated that the Ministry of Steel Development is committed to fulfilling its responsibilities honestly and has followed all relevant laws and guidelines in managing its budget for 2024.
