The House of Representatives has taken a significant step by directing its committees on Privatisation and Commercialisation, Industry, and Steel to launch an investigation into the abandonment of Osogbo Steel Rolling Company and Nigeria Machine Tools (NMT).
This move follows a motion titled “Need to Investigate the Privatisation and Subsequent Abandonment of Osogbo Steel Rolling Mills,” moved by Adewale Morufu Adebayo and Akanni Clement Ademola.
The committees have been given a four-week timeframe to conduct the investigation and report back for further legislative action.
The House also called on the Bureau of Public Enterprise (BPE) to regularly inspect and monitor government-owned enterprises acquired by investors.
Osogbo Steel Rolling Company, established in 1983, was one of the three Inland Rolling Mills in Nigeria, designed to produce a maximum of 210,000 metric tonnes of iron rods annually.
The Nigeria Machine Tools (NMT), founded in 1980, aimed to manufacture and distribute high-integrity machine tools and engineering products.
Both entities played crucial roles in the Nigerian industrial sector, with Osogbo Steel Rolling Mills contributing to the construction of Africa’s largest Third Mainland Bridge in Lagos.
The House expressed awareness that the Privatisation and Commercialisation Act facilitated the privatization of federal government-owned enterprises, including those in which the government had an equity stake.
Noting that the Obasanjo administration privatized both companies to bring in core investors, the House regretted the current state of abandonment.
The Osogbo Steel Rolling Company, initially designed for three phases of development, has faced challenges leading to its liquidation in 2005.
The House acknowledged the concerns of stakeholders in Osun State, including lawmakers, who have protested against the abandonment of these industrial assets.
The abandoned properties have become havens for criminal activities, including the presence of gunmen, kidnappers, and drug dealers.
The House of Representatives aims to address these issues through the investigative efforts of its committees, seeking to uncover the circumstances surrounding the abandonment of Osogbo Steel and Nigeria Machine Tools, and to determine the necessary steps for potential revitalization or corrective actions.
