Reps Probe NIOMCO Premium Steel Deal: Alleged Procurement Breaches

• The House of Representatives Committee on Steel Development has launched an investigation into a sub-lease agreement between NIOMCO and Premium Steel and Mines Limited.
• This probe follows a civil society petition alleging breaches of the Public Procurement Act, 2007, by the Federal Ministry of Steel Development.
• Lawmakers are scrutinizing whether proper presidential, parliamentary, and procurement approvals were obtained for the NIOMCO deal.
• The committee is also examining other Federal Ministry of Steel Development contracts, including audits and digitisation projects for Ajaokuta Steel Company Limited.
• The Minister of Steel Development has been given seven days to provide certified true copies of all relevant documents for the inquiry.

The overarching objective of the House of Reps steel committee probe is multifaceted: to ascertain full compliance with all relevant regulations, to safeguard public funds from potential mismanagement, and ultimately, to ensure that the nation receives optimal value for money in all its public sector agreements.

The House of Representatives Committee on Steel Development has commenced a significant preliminary investigation into a sub-lease and operation agreement involving the National Iron Ore Mining Company (NIOMCO) and Premium Steel and Mines Limited. This parliamentary inquiry, which targets the Reps probe NIOMCO Premium Steel deal, was triggered by a petition dated August 20, 2026, submitted by the civil society organization Public Accountability & Transparency International. The petition raised serious concerns regarding the specifics of the agreement itself, alongside alleged Nigeria Public Procurement Act breaches by the Federal Ministry of Steel Development and its associated agencies.

Confirming the initiation of the probe, Committee Chairman Zainab Gimba communicated the development in a letter dated September 10, 2026, addressed to the Minister of Steel Development. The committee asserts its authority to conduct this investigation under the provisions of Sections 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria (as amended), further supported by Order 17 of the Standing Orders of the House of Representatives. This action underscores a commitment to public interest and accountability in major government contracts.

A central focus of the NIOMCO sub-lease agreement investigation revolves around allegations that iron ore, specifically designated for the reactivation and use as feedstock by the Ajaokuta Steel Company Limited, has been concessioned to an Indian company. This particular arrangement has drawn scrutiny, especially in light of the Federal Government’s ongoing efforts to revitalize the Ajaokuta Steel Company Limited under President Bola Tinubu’s "Renewed Hope Agenda." The House of Reps steel committee probe aims to determine whether requisite presidential approval, strict adherence to the Public Procurement Act, and appropriate consultation with the National Assembly were sought and obtained prior to the execution of this sub-lease and operation agreement.

Beyond the specific NIOMCO transaction, the committee’s mandate extends to a broader examination of alleged breaches of the Public Procurement Act by the Federal Ministry of Steel Development in the award of other contracts. These include significant projects such as the technical and financial audit of Ajaokuta Steel Company Limited and the digitisation of its archives. Further allegations under investigation suggest that the Ministry awarded contracts on behalf of its agencies and parastatals in contravention of Sections 15 and 16 of the Public Procurement Act, and also failed to award budgeted contracts in line with the Act’s stipulated provisions and timelines.

The petition that instigated this parliamentary inquiry also brought to light historical concerns regarding the management of NIOMCO. It highlighted a previous period when the same Indian company managed NIOMCO during the administrations of former Presidents Olusegun Obasanjo and Umaru Yar’Adua. This earlier engagement, according to the petition, culminated in significant operational collapse, subsequent litigation, and substantial compensation payments made by the Federal Government of Nigeria. This historical context provides a backdrop for the current scrutiny, emphasizing the need for thorough due diligence.

The overarching objective of the House of Reps steel committee probe is multifaceted: to ascertain full compliance with all relevant regulations, to safeguard public funds from potential mismanagement, and ultimately, to ensure that the nation receives optimal value for money in all its public sector agreements. This comprehensive approach reflects a commitment to transparency and accountability across the steel and mining sectors, particularly concerning Federal Ministry of Steel Development contracts.

In a direct move to facilitate its investigation, the committee has issued a clear directive to the Minister of Steel Development. The Minister has been granted a period of seven days from the receipt of the committee’s letter to submit certified true copies of all documents pertinent to the transactions and contracts under investigation. For the NIOMCO-Premium Steel deal, specific documents requested include the sub-lease and operation agreement itself, the Bureau of Public Procurement (BPP) Certificate of No Objection, Federal Executive Council (FEC) approval, and evidence of Presidential or National Assembly concurrence.

Furthermore, the committee has demanded all memoranda and legal opinions related to the other contracts under scrutiny, such as those concerning the Ajaokuta Steel Company Limited audits and digitisation. This stringent demand for documentation underscores the committee's resolve to conduct a thorough and evidence-based inquiry into the alleged Nigeria Public Procurement Act breaches and the overall integrity of the Federal Ministry of Steel Development contracts.

This investigation signals heightened parliamentary scrutiny over major government contracts and adherence to the Public Procurement Act, 2007. Lawyers advising entities involved in public sector agreements, particularly in the steel and mining sectors, should review existing contracts for compliance and prepare for potential regulatory inquiries or challenges.

Source: Original reporting via Nigerian press outlets.