AMCON Sold Delta Steel Company Sold for $30m, Despite Valuation of $700m– BPE DG

Ayodeji Gbeleyi, Director General of the Bureau for Public Enterprises (BPE), revealed that Delta Steel Company, valued at over $700m, was sold for just $30m. He disclosed this during a session with the House of Representatives Committee on Public Assets in Abuja on Friday, February 14.

According him, in 2005, the federal government sold 80% of the Aladja-based company to Global Infrastructure Nigeria Ltd, retaining a 20% stake. Gbeleyi explained that the company’s assets, including land and residential buildings, were used to settle workers and pensioners.

Following privatisation, the company used its assets as collateral for a loan from Ecobank. However, due to non-performance, the Asset Management Corporation of Nigeria (AMCON) took control of the assets in 2015, eventually selling them to Premium Steel and Mines Ltd.

ALSO READ: EFCC Secures Forfeiture of 753-Duplex Estate in Abuja

“If our forefathers who were less exposed and less educated would build such infrastructure and maintaining it by our contemporary leaders who are more exposed and educated than them will be a problem, I wonder what will be the future of the country.” Gbeleyi criticised AMCON for failing to consult with BPE before the sale and highlighted discrepancies in the list of creditors.

Petitioners, including residents of the Delta Steel estate, have accused AMCON and Premium Steel of harassment, claiming the residential buildings were not part of the collateral.

AMCON representatives defended the acquisition, stating they bought the assets to prevent the collapse of four banks and sold them for N32bn. However, the Accountant General’s Office confirmed only a N3bn payment had been made to BPE for the initial sale to Global Infrastructure.

The House committee, investigating the sale, has ordered AMCON and Premium Steel to halt any further harassment of the estate’s residents until the probe concludes.