Reps probe NIOMCO-Premium Steel deal, procurement breaches
September 11, 2026 12:45 am
File: House of Reps Green Chamber
The House of Representatives Committee on Steel Development has commenced a preliminary investigation into the sub-lease and operation agreement between the National Iron Ore Mining Company and Premium Steel and Mines Limited.
The probe followed a petition by a civil society organisation, Public Accountability & Transparency International, dated August 20, 2026, raising concerns over the agreement and alleged breaches of the Public Procurement Act, 2007, by the Federal Ministry of Steel Development and its agencies.
The Chairman of the committee, Zainab Gimba, disclosed this in a letter dated September 10, 2026, addressed to the Minister of Steel Development.
She said the committee commenced the probe pursuant to Sections 88 and 89 of the 1999 Constitution and Order 17 of the Standing Orders of the House of Representatives.
“Pursuant to Sections 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and Order 17 of the Standing Orders of the House of Representatives, the committee has commenced a preliminary investigation into the matters raised therein in the public interest,” the letter stated.
The petition, according to the committee, raised concerns over the sub-lease and operation agreement executed between NIOMCO and Premium Steel and Mines Limited.
The committee said one of the allegations was that iron ore meant for the reactivation and use as feedstock by the Ajaokuta Steel Company Limited had allegedly been concessioned to an Indian company.
It said the petitioners questioned the arrangement in view of the Federal Government’s efforts to revive Ajaokuta Steel Company Limited under the Renewed Hope Agenda of President Bola Tinubu.
The committee also said the petition raised concerns over the previous management of NIOMCO by the same Indian company during the administrations of former Presidents Olusegun Obasanjo and Umaru Yar’Adua.
According to the committee, the petition alleged that the earlier arrangement “culminated in operational collapse, litigation, and substantial compensation paid by the Federal Government of Nigeria.”
The lawmakers said they would also determine whether the necessary approvals and statutory procedures were followed before the agreement was executed.
The committee specifically wants to establish “whether the requisite presidential approval, adherence to the Public Procurement Act, and consultation with the National Assembly were sought and obtained before the execution of the Sub-Lease and Operation Agreement.”
Beyond the NIOMCO transaction, the committee said it was investigating alleged breaches of the Public Procurement Act by the ministry in the award of contracts.
The contracts under scrutiny include the technical and financial audit of Ajaokuta Steel Company Limited and the digitisation of Ajaokuta Steel Company archives.
The committee is also probing allegations that the ministry awarded contracts on behalf of its agencies and parastatals contrary to Sections 15 and 16 of the Public Procurement Act.
Another allegation being investigated is the alleged failure by the ministry to award budgeted contracts in line with the provisions and timelines of the Act.
The committee said the probe was being conducted “to ascertain compliance, safeguard public funds, and ensure value for money.”
It consequently gave the minister seven days from the receipt of the letter to submit certified true copies of documents relating to the transactions and contracts under investigation.
Among the documents demanded on the NIOMCO-Premium Steel agreement are the sub-lease and operation agreement, BPP Certificate of No Objection, FEC approval and evidence of Presidential or National Assembly concurrence.
The committee also requested all memoranda, legal opinions and correspondence relating to the transaction.
On the Ajaokuta technical and financial audit, the committee demanded the procurement plan, approvals, budgetary provision, bidding documents, advertisement, bid-opening register, technical and financial evaluation reports, Tenders Board minutes and approval.
It also requested the letter of award, executed contract agreement, details of the contractor, BPP Certificate of No Objection and evidence of payment.
Similar documents were requested in relation to the digitisation of the Ajaokuta archives, including the procurement plan, bidding documents, evaluation reports, Tenders Board approval, executed contract, scope of work and project status report.
The lawmakers also demanded a comprehensive list of contracts awarded by the ministry on behalf of its agencies and parastatals from 2024 to date.
The list, they said, must contain the project title, contractor’s name, address, RC number, contact details, contract sum and status.
The committee further requested “legal opinion/justification for the Ministry acting as Procuring Entity” and relevant procurement files showing compliance with Sections 15 and 16 of the Public Procurement Act.
The minister was also asked to provide administrative files, internal memoranda and minutes of meetings relating to the allegations, as well as evidence that the contract awards were published on the websites of the BPP and the Ministry.
The committee demanded a “formal written response” containing a detailed, point-by-point reaction to each of the allegations.
It warned that failure to comply within the stipulated seven days would result in the committee invoking its constitutional powers.
“Failure to comply with this directive within the stipulated seven days will leave the committee with no option but to invoke its powers under Section 89(1)(c) of the Constitution to summon you and relevant officials, and to compel the production of documents,” Gimba warned.
The committee said it expected the ministry’s cooperation “in the interest of transparency, accountability and good governance in the steel sector.”
Onozure is a correspondent of The PUNCH on the judiciary beat. She has over a decade experience covering criminal and civil matters from the magistrate to the appellate courts. She’s a graduate of Political Science
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