The Federal Authorities has proposed to spend N6.04 billion on personnel prices for Ajaokuta Metal Firm Restricted within the 2026 fiscal yr, although the metal complicated has remained non-operational greater than 4 many years after it was conceived.
Information from the 2026 Appropriation Invoice exhibits that the corporate was allotted a complete of N6.69 billion for the yr, with personnel bills alone accounting for about 90.4% of the complete provision.
The construction of the allocation reinforces Ajaokuta’s long-standing position as a non-producing public enterprise sustained largely by wage funds reasonably than industrial exercise.
What does the 2026 proposed price range present
Nairametrics noticed that of the N6.04 billion earmarked for personnel, N4.79 billion is for salaries and wages, whereas N1.25 billion is put aside for allowances and statutory social contributions.
These embody N479.42 million for employer pension contributions, N239.71 million for NHIS funds and N59.82 million for workers’ compensation insurance coverage. Common allowances alone quantity to N468.9 million.
A better take a look at the proposed 2026 price range exhibits a pointy imbalance between recurrent and capital expenditure. Complete recurrent spending for Ajaokuta stands at N6.28 billion, whereas capital expenditure is restricted to N410.8 million.
Which means lower than 7% of the corporate’s whole allocation is directed in the direction of belongings, rehabilitation or infrastructure.
The capital price range itself is thinly unfold throughout minor gadgets. Mounted asset purchases corresponding to computer systems, printers and safety gear account for N56.4 million.
Building and provision of amenities take N129.2 million, whereas rehabilitation and repairs are allotted N225.2 million, largely for electricity-related works and workplace buildings.
These figures spotlight how little funding is being channelled towards reviving a heavy industrial complicated initially designed to anchor Nigeria’s metal and manufacturing worth chain.
12 months-on-year developments present persistence, not reform
An examination of current price range developments exhibits that the 2026 figures characterize continuity reasonably than reform. In 2024, personnel prices at Ajaokuta stood at N4.29 billion.
This jumped to N6.21 billion in 2025, representing a 44.8% improve regardless of the absence of manufacturing. The proposed N6.04 billion for 2026 displays solely a marginal 2.7% discount from the earlier yr.
Whereas the slight decline might seem like restraint on paper, it doesn’t alter the underlying construction of spending.
Salaries proceed to dominate the price range, whereas capital funding stays compressed, confirming that workers remuneration stays the core precedence reasonably than metal output.
Zero income and dependence on federal funds
The price range doc signifies that Ajaokuta is projected to generate zero impartial income in 2026 and can obtain no grants. This leaves the corporate absolutely depending on federal subventions for survival.
Regardless of this, it continues to characteristic in constituency-style capital initiatives corresponding to photo voltaic road lighting in elements of Niger East and Kwara North, water amenities, highway repairs, safety lighting and grants to market ladies and youths.
- These initiatives, though ongoing, usually are not linked to metal manufacturing or industrial capability and do little to alter the corporate’s non-operational standing.
- Nevertheless, separate from Ajaokuta’s personal allocation, the proposed 2026 price range consists of provisions for revival-related actions beneath the Federal Ministry of Metal Improvement.
- The ministry allotted N150.99 million for the revitalisation of Ajaokuta Metal Firm Restricted and the Nationwide Iron Ore Mining Firm, categorised as an ongoing capital venture.
- Additionally, N1.06 billion was put aside for venture preparation aimed toward funding mobilisation for Ajaokuta.
- This covers feasibility research, Environmental and Social Influence Assessments and monetary modelling.
- Whereas these alerts continued planning exercise, it additionally exhibits that spending stays focused on preparatory work reasonably than bodily recommissioning.
The 2026 provisions are notably decrease than in 2025, when the ministry budgeted N2.41 billion for venture preparation and N250.98 million for revitalisation of Ajaokuta and NIOMCO.
The decline factors to a 56% drop in venture preparation spending yr on yr, even because the metal complicated stays idle.
What you must know
Conceived in 1979 as Nigeria’s flagship industrial venture, the Ajaokuta Built-in Metal Complicated was anticipated to cut back metal imports, drive industrialisation and help financial diversification.
- Greater than 40 years later, price range allocations recommend it capabilities largely as a payroll establishment, with successive governments funding salaries whereas manufacturing stays at zero.
- On its web site, the corporate says it employs about 3,000 staff and claims that full commissioning might instantly have interaction about 10,000 workers, with upstream and downstream industries doubtlessly supporting as much as 500,000 jobs nationwide.
For now, the proposed 2026 price range figures present a metal plant sustained by recurrent spending, with revival nonetheless confined to research and plans reasonably than output.
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