A long time ago, a very big steel company called Delta Steel Company (DSC) was built in Aladja, Delta State. It was worth over $700 million (about ₦1 trillion today). This company was very important because it made steel, which is used to build things like bridges, houses, and cars.
But something strange happened—the government sold it for just $30 million (less than ₦50 billion). Many people believe that this was not fair and that something suspicious happened during the sale.
Who Sold the Company?
The Director General of the Bureau for Public Enterprises (BPE), Ayodeji Ariyo Gbeleyi, explained to the Nigerian government that Ahmed Kuru, a former Managing Director of a government agency called AMCON, was involved in the sale. Kuru is now facing serious fraud charges of up to ₦20 billion!
How Did It Happen?
- In 2005, the government decided to sell 80% of the steel company to a business called Global Infrastructure Nigeria Ltd (GINL). The government kept 20% of the company.
- Some of the company’s houses and land were given to workers and pensioners.
- After buying the company, GINL borrowed money from Ecobank using DSC’s assets (factories, machines, and land) as security.
- But GINL could not pay back the loan, so in 2015, AMCON took over the company.
- Later, AMCON sold the company to another business called Premium Steel and Mines Ltd.
The Big Problem
Many people believe AMCON did not follow the right process when selling the company. Even BPE, the government agency that oversees privatization, said it was not properly informed.
A group of people who lived in the workers’ estates at DSC also complained. They said they had a legal agreement to stay there, but from 2015, police and soldiers started forcing them to leave on the orders of AMCON and Premium Steel.
One of them, Richardson Osifor, said that GINL’s original loan from Ecobank was only ₦250 million, but AMCON somehow claimed that the debt had grown to ₦7 billion!
AMCON’s Response
AMCON’s lawyer, Chukwuemeka Umunakwu, said AMCON took over DSC to save it from collapsing. He also claimed:
- AMCON bought the company for ₦22 billion and later sold it for ₦32 billion to Premium Steel.
- But the government has not seen any proof that AMCON paid ₦32 billion to Nigeria’s Treasury Single Account (TSA).
The Director of Finance at the Accountant General’s office, Kabiru Ademola, said they received only ₦3 billion from the sale. He said the Central Bank had not confirmed if the full ₦32 billion was paid.
A Lost Opportunity for Nigeria
Dr. Armstrong Takang, the Managing Director of Ministry of Finance Incorporated (MOFI), said his office wants nothing to do with the Delta Steel case because of too many problems. He felt sad that Nigeria was not maintaining important industries like DSC.
He said:
“If our forefathers, who were less educated, built this steel company, why can’t today’s leaders, who are more educated, maintain it?”
What Happens Next?
The House of Representatives Committee on Public Assets is now investigating what happened. The Chairman, Ademorin Kuye, said:
- They will look into the sale of DSC.
- AMCON and Premium Steel must stop harassing the estate residents until the investigation is complete.
Ahmed Kuru in More Trouble
Meanwhile, Ahmed Kuru, the former boss of AMCON, is facing trial for a ₦20 billion fraud case. A company linked to him, Sigma Golf Nigeria Limited, was found guilty of fraud and sentenced in court. The trial is still ongoing.
Why This Story Matters
Delta Steel Company was supposed to help Nigeria grow by producing steel for roads, bridges, and buildings. Instead, it was sold in a way that many believe was unfair.
Now, people are asking: Who really benefited from the sale? And will Nigeria ever be able to build and keep industries that help the country grow?
