CISLAC Urges Transparency and Legal Adherence in Revitalisation of Ajaokuta Steel Complex
By Perpetua Onuegbu
ABUJA, NIGERIA November 2024 - The Civil Society Legislative Advocacy Centre (CISLAC) has called for transparency and strict compliance with legal standards in the process of selecting a transaction adviser for the revitalisation of Ajaokuta Steel Complex Limited (ASCL).
In a statement issued in Abuja on Thursday, CISLAC’s Executive Director, Auwal Rafsanjani, revealed that letters had been sent to the Federal Ministry of Steel Development and the Bureau of Public Procurement (BPP) urging adherence to due process.
Rafsanjani also emphasized the need for transparency in the procurement process of the National Iron Ore Mining Company (NIOMCO) in Itakpe, citing potential irregularities that could contravene the Public Procurement Act of 2007 and other legal frameworks.
“Given the strategic economic significance of ASCL and NIOMCO, CISLAC stresses the necessity of a rigorous and transparent process in selecting a qualified transaction adviser,” Rafsanjani stated.
He highlighted key issues, including the failure of the Request for Proposal (RFP) to specify the weight assigned to quality and cost factors, a requirement under Section 51(1) of the Public Procurement Act. He also pointed out that bidders’ technical scores were not disclosed before opening financial proposals, which violates Section 51(4) of the Act.
“The absence of explicit evaluation criteria in the RFP undermines fairness and contravenes Section 46(1)(e) of the Act, potentially leading to arbitrary scoring,” he added.
CISLAC also expressed concerns over the exclusion of the Infrastructure Concession Regulatory Commission (ICRC) from the procurement process, which Rafsanjani argued violates the ICRC Act of 2005 and other statutory requirements for public-private partnerships.
The organisation further noted the importance of civil society organisations (CSOs) in monitoring procurement processes to align with global standards and Nigeria’s National Anti-Corruption Strategy.
“Section 57 of the Public Procurement Act mandates transparency in disclosing conflicts of interest, a critical element for impartiality in the selection process,” Rafsanjani remarked. He also warned against potential breaches of the Fiscal Responsibility Act, ministerial oversight duties, and ethical standards.
With federal investments in ASCL and NIOMCO exceeding $7 billion over four decades without tangible results, CISLAC cautioned against repeating past mistakes. Rafsanjani urged the Minister of Steel Development and the Director-General of the Bureau of Public Procurement to ensure a fair, open, and accountable process in appointing a competent transaction adviser.
“Transparency and accountability are not optional—they are essential for restoring public trust and securing a successful future for these critical national assets,” Rafsanjani concluded.
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