CISLAC urges transparency in selecting Ajaokuta Steel transaction advisor
The Civil Society Legislative Advocacy Centre (CISLAC) has urged the Ministry of Steel Development and the Bureau of Public Procurement (BPP) to ensure transparency and adherence to legal standards in the ongoing procurement process for selecting a ‘Transaction Advisor’ to revitalise the Ajaokuta Steel Complex Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO). […]
The Civil Society Legislative Advocacy Centre (CISLAC) has urged the Ministry of Steel Development and the Bureau of Public Procurement (BPP) to ensure transparency and adherence to legal standards in the ongoing procurement process for selecting a ‘Transaction Advisor’ to revitalise the Ajaokuta Steel Complex Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO).
In two separate letters signed by Executive Director of CISLAC, Comrade Auwal Musa Rafsanjani, and addressed to the Minister of Steel Development and the Director General of the BPP, CISLAC, which is also the Nigerian chapter of Transparency International (TI), expressed concerns over potential irregularities in the procurement process that may contravene the Public Procurement Act 2007, Public Procurement Regulations, and other standards of transparency and accountability.
Given the strategic economic significance of ASCL and NIOMCO, CISLAC emphasised the importance of a rigorous and transparent process in selecting a qualified adviser. The organization emphasised that the process should uphold public trust by strictly adhering to due process to ensure the selection of the most competent adviser.
CISLAC pointed out that the Request for Proposal (RFP) reportedly failed to specify the weight assigned to quality and cost factors, as required by Section 51(1) of the Public Procurement Act, 2007, thus undermining fairness in the selection process.
Rafsanajani noted that omitting the Infrastructure Concession Regulatory Commission (ICRC) from the procurement process raises concerns, as it violates the ICRC Act, 2005, and statutory requirements for public-private partnerships.
He said that this exclusion raises legal and transparency issues, especially for a project of such national significance and also noted the importance of Civil Society Organizations (CSOs) in monitoring procurement processes to foster public confidence, in line with both global standards and the National Anti-Corruption Strategy.
The letter added that Section 57 of the Act mandates transparency in disclosing conflicts of interest, a requirement essential for impartiality in the selection process and also raised concerns over potential breaches of the Fiscal Responsibility Act, ministerial oversight obligations, and public ethics standards.
He noted that with federal investments in ASCL and NIOMCO exceeding $7bn over 40 years without yielding results, Nigeria cannot afford to repeat the mistakes of the past in its efforts to revive these critical assets.