In a stunning development, former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has been indicted following the sale of the Delta Steel Company, a state-owned industrial asset valued at $700 million, for a mere $30 million. The alleged undervaluation and questionable sale of this crucial national asset have raised serious concerns among government officials, stakeholders, and the Nigerian public.
The indictment centers around Kuru's role in the controversial privatization deal, where the Delta Steel Company, once a key player in Nigeria’s steel industry, was sold at an alarming fraction of its actual worth. This transaction, which took place under Kuru’s leadership, has sparked a wave of scrutiny as the massive undervaluation of the company is now being questioned.
Investigators have raised concerns about the integrity of the sale process, alleging that the transaction was manipulated to benefit a select few while depriving the Nigerian government and the public of potential revenues. Despite the company’s significant assets and long-term strategic importance to Nigeria’s industrialization goals, the sale was carried out at a fraction of its market value, calling into question the transparency and legitimacy of AMCON’s handling of public assets.
According to the indictment, the $30 million sale price was not only an egregious underestimation of the company’s worth but also indicative of improper conduct by Kuru and other involved parties. The Delta Steel Company, a major contributor to Nigeria’s steel production, had long been recognized as a valuable asset with the potential to revitalize the country’s manufacturing sector.
The Nigerian government has vowed to pursue further investigation into the matter and has expressed its commitment to holding those responsible accountable. The Economic and Financial Crimes Commission (EFCC) has reportedly initiated an inquiry into Kuru’s role in the sale, which is expected to be a pivotal moment in the ongoing fight against corruption in the country’s privatization processes.
In response to the allegations, Ahmed Kuru has yet to issue a public statement, and legal representatives are expected to contest the charges. However, the case has already sparked a wider debate about the accountability and transparency of Nigeria's public asset management systems, especially in relation to AMCON, which was established to address the country's non-performing loans and manage troubled assets.