The House of Representatives Committee on Steel Development has begun a preliminary investigation into the sub-lease and operation agreement involving the National Iron Ore Mining Company and Premium Steel and Mines Limited.
The investigation was triggered by a petition submitted by a civil society organisation, Public Accountability & Transparency International, on August 20, 2026. The petition expressed concerns about the agreement and alleged violations of the Public Procurement Act, 2007, by the Federal Ministry of Steel Development and its agencies.
The committee’s Chairman, Zainab Gimba, revealed this in a letter dated September 10, 2026, and addressed to the Minister of Steel Development.
Gimba said the committee launched the investigation in accordance with 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.
According to the committee, the petition questioned the sub-lease and operation agreement entered into by NIOMCO and Premium Steel and Mines Limited.
It said one of the issues raised was the allegation that iron ore intended for the revival and use as feedstock by the Ajaokuta Steel Company Limited had been concessioned to an Indian company.
The committee said the petitioners challenged the arrangement against the backdrop of the Federal Government’s ongoing efforts to revive the Ajaokuta Steel Company Limited under President Bola Tinubu’s Renewed Hope Agenda.
It added that the petition also raised questions about the previous management of NIOMCO by the same Indian company under the administrations of former Presidents Olusegun Obasanjo and Umaru Yar’Adua.
The committee said 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 part of the investigation would be to establish whether all required approvals and statutory processes were observed before the agreement was signed.
In particular, the committee 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.”
In addition to the NIOMCO agreement, the committee said it was examining alleged violations of the Public Procurement Act by the ministry in the award of contracts.
Among the contracts being examined are the technical and financial audit of Ajaokuta Steel Company Limited and the digitisation of the company’s archives.
The committee is equally investigating claims that the ministry awarded contracts on behalf of its agencies and parastatals in breach of Sections 15 and 16 of the Public Procurement Act.
It is also looking into allegations that the ministry failed to award contracts provided for in the budget in accordance with the requirements and stipulated timelines of the Act.
The committee said the investigation was being undertaken “to ascertain compliance, safeguard public funds, and ensure value for money.”
Consequently, the minister was given seven days from the date of receiving the letter to provide certified true copies of documents connected to the transactions and contracts under investigation.
Documents requested concerning the NIOMCO-Premium Steel agreement include the sub-lease and operation agreement, BPP Certificate of No Objection, FEC approval, as well as evidence of Presidential or National Assembly concurrence.
The committee also asked for all memoranda, legal opinions and correspondence associated with the transaction.
Regarding the technical and financial audit of Ajaokuta Steel Company Limited, the committee requested the procurement plan, relevant approvals, budgetary provision, bidding documents, advertisement, bid-opening register, technical and financial evaluation reports, Tenders Board minutes and approval.
It further requested the letter of award, signed contract agreement, information on the contractor, BPP Certificate of No Objection and evidence of payment.
For the digitisation of the Ajaokuta archives, the committee requested similar records, 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 complete list of contracts awarded by the ministry on behalf of its agencies and parastatals from 2024 to date.
According to the committee, the list must include the project title, contractor’s name, address, RC number, contact information, contract value and current status.
It further requested “legal opinion/justification for the Ministry acting as Procuring Entity” alongside relevant procurement records demonstrating compliance with Sections 15 and 16 of the Public Procurement Act.
The minister was also directed to submit administrative files, internal memoranda and minutes of meetings concerning the allegations, as well as evidence showing that the contract awards were published on the websites of the BPP and the ministry.
The committee also requested a “formal written response” providing a detailed, point-by-point reply to all the allegations.
It warned that failure to submit the requested documents and response within the seven-day deadline would lead to the invocation of 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 to cooperate fully “in the interest of transparency, accountability and good governance in the steel sector.”
