Crunch Times News

By Otobong Gabriel, Abuja 

By Otobong Gabriel, Abuja 

By Otobong Gabriel, Abuja 

By Otobong Gabriel, Abuja 

For over four decades, the Ajaokuta Steel Company has stood as both a symbol of Nigeria’s industrial ambition and a reminder of its policy failures. Conceived in 1979 as the backbone of the nation’s manufacturing sector, the massive steel complex in Kogi State was meant to power everything from construction to automobile production.

Yet today, despite billions of naira spent over the years, Ajaokuta produces virtually no steel.

What makes the situation even more controversial is this: while the plant remains largely dormant, workers are still being paid billions of naira in salaries annually.

And contrary to popular belief, these payments are not coming from the Kogi State Government. They are funded by the Federal Government through yearly national budgets.

This contradiction — huge payroll costs without production has triggered growing public anger, legislative scrutiny, and questions about accountability.

The Steel Plant That Never Took Off

Ajaokuta was designed to be Africa’s largest integrated steel plant, capable of producing millions of tonnes of steel annually and reducing Nigeria’s reliance on imports. But technical delays, political interference, contract disputes, and poor management stalled the project repeatedly.

Decades later, critical components such as the blast furnace have never fully functioned. In practical terms, the plant has remained inactive.

Despite this, the facility still operates as if it were an active industrial enterprise — at least on paper.

Salaries Without Production

Each year, the Federal Government budgets large sums to cover Ajaokuta’s personnel costs.

Recent budgets show billions of naira allocated mainly for salaries and allowances, with personnel expenses taking the overwhelming majority of the company’s total funding. Only a small fraction goes to capital projects or actual rehabilitation of the plant.

Over time, this has resulted in tens of billions of naira being spent on wages for a company that generates little or no output.

To many Nigerians, this raises a simple question: what exactly are these workers being paid to do?

Government’s Defence

Officials argue that staff must be retained to maintain and protect the massive infrastructure. According to this explanation, the workers prevent vandalism, safeguard equipment, and keep the facility from deteriorating completely while the government searches for revival or concession plans.

On the surface, this reasoning sounds practical. Abandoning a multi-billion-dollar industrial complex entirely could invite theft and destruction.

But critics say the numbers simply don’t add up.

Lawmakers Raise Red Flags

Several lawmakers have challenged the logic behind the huge personnel budgets. During oversight visits and hearings, some legislators reported seeing only a handful of active staff on ground — far fewer than the thousands reportedly on payroll.

This has fueled suspicions of:

inflated staff figures

inefficient deployment

possible “ghost workers”

or outright payroll fraud

If only minimal maintenance is required, critics ask, why are billions needed every year?

The imbalance becomes even more troubling when compared with the tiny amounts allocated for actually fixing or completing the steel plant.

In effect, more money is spent paying workers than reviving the factory itself.

The Kogi State Misconception

A recurring claim is that the Kogi State Government collects Ajaokuta salaries without work. But this is misleading.

Ajaokuta Steel Company is a federal asset, owned and funded by the Federal Government. Payroll payments come from federal allocations, not state revenue.

While the plant is located in Kogi, the state government does not control the salary structure or budget.

The real issue lies at the federal level — in budgeting priorities and project management.

The Bigger Economic Cost

Beyond the salary controversy, Ajaokuta represents a deeper national loss.

If functional, the steel complex could:

reduce steel imports

create thousands of real industrial jobs

support manufacturing, boost GDP

and strengthen Nigeria’s self-reliance

Instead, public funds continue to sustain an idle workforce rather than an active industry. This turns what should be an economic engine into a financial drain.

A Symbol of Policy Failure

Many analysts now see Ajaokuta as a case study in how large public projects fail — not because of lack of vision, but because of inconsistent policies, political interference, weak oversight, and poor accountability.

Paying salaries without productivity may keep the lights on, but it does nothing to move the country forward.

Without serious restructuring, transparent audits, and genuine commitment to either revive or privatize the plant, the cycle is likely to continue.

Conclusion

At its core, the Ajaokuta salary controversy is not just about workers being paid without steel production. It is about how public resources are managed.

Year after year, billions are spent maintaining the illusion of activity while the factory remains silent.

Until funding shifts from salaries to real industrial revival — and until payroll systems are made transparent — Ajaokuta will remain what many Nigerians sadly call it today: "a giant monument to wasted potential."

By Otobong Gabriel, Abuja 

By Otobong Gabriel, Abuja 

By Otobong Gabriel, Abuja