By Christian Simon
The Economic and Financial Crimes Commission (EFCC) is currently investigating allegations of money laundering, misappropriation, and criminal diversion of public funds at the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna.
Findings reveal that over N105 million was allegedly siphoned through fake companies, while staff lament unpaid arrears approved by the government. Meanwhile, equipment worth millions of naira has been vandalized and stolen under suspicious circumstances.
The allegations, under EFCC scrutiny, are levelled against the agency’s Director-General, Mr. Kolawe Michael Ogunbiyi, whose leadership has been marred by claims of corruption and administrative inefficiency since his appointment in 2022.
Federal Government’s Steel Revival Plan at Risk
The Federal Government’s agreement with Russia for the revival of Nigeria’s steel industry—and plans to boost the nation’s GDP—may face setbacks if NSRMEA, the primary raw materials supplier, remains entangled in corruption allegations.
A petition submitted to the EFCC in 2023 contained detailed evidence of financial misconduct, including diversion of funds. Investigations reportedly found Ogunbiyi culpable, yet the case has not been prosecuted, raising concerns over possible cover-ups.
Frustrated by the delay, the petitioners’ legal counsel wrote to the Attorney General and Minister of Justice on March 4, 2025, demanding a discreet investigation into why the EFCC’s findings were being ignored. Meanwhile, Ogunbiyi continues to oversee the agency, with staff morale at an all-time low.
How N105 Million Was Allegedly Stolen
Documents show that N105,130,504.94 was withdrawn in a single day—December 21, 2022—and distributed among four questionable companies:
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
Unpaid Staff Arrears and Dubious Deductions
The Federal Government had approved N1.2 billion to settle hazard and medical allowances owed to staff between 2009 and 2015. Ogunbiyi chaired the committee responsible for compiling beneficiaries and payment schedules. However, heavy, unexplained deductions were made from each beneficiary’s entitlement.
Payments were disbursed in four installments via IPPI:
25% on April 6, 2022
25% on May 11, 2022
25% on June 14, 2022
Final 25% on June 22, 2022
Shockingly, no beneficiary was allowed to verify their payment details, fueling suspicions of fraud.
Further investigations revealed that the Senior Staff Association of University Teaching Hospitals, Research and Allied Institutions (SSAUTHRAI) and the NSC Cooperative Society allegedly colluded with the committee to divert funds. The computation process bypassed internal audit, violating government financial regulations.
Staff on Payroll Despite Absconding, Unresolved Transfers
Some staff who absconded from duty, some reportedly living abroad, remain on the agency’s payroll, allegedly protected by Ogunbiyi.
Additionally, transferred staff from sister agencies—including Ajaokuta Steel Company, National Metallurgical Development Centre, and National Lottery Regulatory Commission—have been unpaid for two years or more after Ogunbiyi reversed their transfers despite completed documentation. Efforts to enroll them on IPPIS were blocked, leading to an ongoing lawsuit at the National Industrial Court.
Controversial Appointment & Violation of Federal Guidelines
Ogunbiyi’s appointment itself is under scrutiny.
A 2011–2019 circular signed by former Secretary to the Government of the Federation, Boss Mustapha, mandates that ministerial appointments of agency heads must follow due process, with approvals routed through the SGF.
However, Ogunbiyi’s appointment was directly conveyed by former Minister of Mines and Steel Development, Olamilekan Adegbite, via the office of ex-Chief of Staff to the President, Prof. Ibrahim Gambari, bypassing proper channels.
Mass Theft of Agency Equipment
Reports indicate rampant theft of agency equipment, including a case where a senior staff was caught stealing electrical cables but shielded due to his ties with the DG.
“Only a forensic audit can reveal the full extent of the damage,” an anonymous staff member said.
Call for Government Intervention
With Nigeria’s steel revival plans at stake, stakeholders are urging the Federal Government to investigate NSRMEA’s operations, recover stolen funds, and prosecute those responsible to restore accountability in the agency.
ENDS
South South Times . 