BY John Wesley Success
The Economic and Financial Crime Commission (EFCC) is currently investigating an allegations of money laundry, misappropriation and criminal diversion of public funds at the National Steel, Raw Material Exploration Agency (NSRMEA) in Kaduna
Findings revealed that over N105 million was alleged to have been mopped through fake companies, as staff cried over unpaid arrears as approved by government while equipment running into millions of Naira vandalised & stolen.
The allegations which is being investigated by the EFCC is against the Director General Mr. Kolawe Michael Ogunbiyi.
The Federal government’s purported agreement with Russia for the revival of the nation’s steel industry and plans to increase the country’s GDP may hit the rock if the provider of the raw materials, National Steel Raw Materials Exploration Agency is not cleansed of allegations of large scale corruption and administrative ineptitude which beclouded the agency since the appointment of Mr. Kolawe Michael Ogunbiyi in 2022.
Allegations of corruption and diversion of public funds running into millions of Naira backed by empirical evidences were contained in a petition sent to the Economic and Financial Crime Commission (EFCC).
Findings however revealed that the EFCC upon receipt of the petition in 2023 swung into action and found the Director General, Mr. Ogunbiyi guilty of all the financial irregularities. How the matter could not be sent to court for prosecution is what is difficult to explain.
Against the above background, Counsel to the petitioners had on 4th March 2025 wrote to the Attorney General and Minister of Justice urging for discreet investigations when it appeared that the EFCC’s findings were being swept under the carpet which give the embattled DG the strength to continue to pilot the affairs of the agency with reckless abandon. The morale of the workforce has been crippled to the lowest ebb leading to collapse of ethics and discipline.
According to available evidence, the mopping of N105, 130, 504.94 (One Hundred and Five Million, One Hundred and Thirty Thousand, Five Hundred and Four and Ninety Four kobo) was executed simultaneously on
December 21st, 2022 as follows:-
Alakrity Global Concept N59, 873, 253.80
Gatplus Dynamic Resources N13, 330, 712.00
Bitcnot Nigeria Ltd N11, 604, 612.00
Teminote Concept N20, 321, 927.14
Similarly, the sum of N1.2billion was said to have been approved by the federal government to pay accumulated arrears of hazard and medical allowances for the period 2009-2017. The Director General Mr. Ogunbiyi chaired the committee for the compilation of the list of the beneficiaries and came up with payment schedule. In the process, heavy deductions were made in each of the beneficiary’s entitlements.
The payments of these arrears were done in four instalments via IPPIS as follows: 25% on the 6th of April 2022, 25% on 11th May, 2022, 25% on 14th June 2022 and the final 25% on June 22nd 2022. There is however concern that some of the beneficiaries were either underpaid or not paid at all.
Most astonishing was the fact that not a single beneficiary was privy to his/her package after the computation, suggesting that some shoddy deals were used in the implementation process.
Additional findings also revealed that the Senior Staff Association of University Teaching Hospitals, Research and Allied Institutions (SSAUTHRAI) and the NSC Co-operative Society together with the committee orchestrated the plan where millions of Naira meant for the defenceless beneficiaries were diverted. The computation of the arrears was done in outright breach of government’s extant financial regulations and did not pass through the internal audit clearance.
In a related development, a section of the staff has dragged the embattled DG to court over unpaid salaries for two years or more. These are staff who were duly accepted on transfet from sister agencies- Ajaokuta Steel Company Limited, National Metallurgical Development Centre, National Lottery Regulatory Commission as well as some staff of the then Ministry of Mines and Steel development.
Upon assumption of duty, Mr. Ogunbiyi redirected that the staff return to their former agencies after they had finished all the documentation for the transfers. All attempts to make the DG consent for the capture and migrate the affected staff on IPPIS payroll platform were resisted by him. The matter has been in the National Industrial Court.
With the on-going legal battle, there is also the controversy regarding his appointment as the Director General of the National Steel Raw Materials Exploration Agency (NSRMEA).
A federal establishment circular 2011-2019 signed by the then Secretary to the Government of the Federation, Boss Mustapha frowns at the way some Ministers continue to process appointments of chief executives without following the clearly defined extant guidelines and the provisions of the enabling laws of such agencies.
In the circular, the President has directed that requests for such appointments should always be channelled to His Excellency through the Secretary to the Government of the Federation who will process them for approval to the appropriate supervising Ministers.
Contrary to the aforementioned circular, the then Minister of Mines and Steel Development, Mr. Olamilekon Adegbite directly conveyed approval for Ogunbiyi’s appointment to him from the office of the then Chief of Staff to the President, Professor Ibrahim Gambari.
There are also reports of some staff who absconded from their duty post for years living abroad and are still on the payroll of the agency. These staff are said to be enjoying the cover of the DG.
Allegations of mass stealing of equipment and accessories which rendered the agency incapacitated to carry out its mandates effectively have also reached an alarming proportion.
According to reports, a senior staff was caught red handed stealing electrical cable which was swiftly covered because of his closeness to the Chief Executive. This recent theft is the high point of series of stealing of the agency’s property running into millions of Naira.
“Only a forensic audit of the agency can determine the level at which things have deteriorated”, an aggrieved staff who spoke on condition of anonymity said
Against the forgoing, the need for the Federal government to beam its search light on the activities of the NSRMEA under the leadership of the incumbent director general with the view to right the wrongs and bring the guilty to book is imperative.
ENDS
Dan Zaki Media 