Former AMCON MD Ahmed Kuru Indicted in $700M Delta Steel Scandal – Sold for $30M

Reports have surfaced that Ahmed Kuru, the former Managing Director of the Assets Management Corporation of Nigeria (AMCON), who is currently facing allegations of financial misconduct amounting to N20 billion, played a key role in the controversial sale of Delta Steel Company.  

The Director General of the Bureau for Public Enterprises (BPE), Ayodeji Ariyo Gbeleyi, disclosed that Delta Steel Company, once estimated to be worth over $700 million, was sold at a significantly lower price of $30 million under Nigeria’s privatization program.  

According to recent findings, Kuru, who is already under scrutiny for financial irregularities, was instrumental in the sale of Delta Steel Company, which has been mired in allegations of corruption.  

During a hearing before the House of Representatives Committee on Public Assets, Gbeleyi elaborated on the sale, revealing that in 2005, Global Infrastructure Nigeria Ltd (GINL) acquired an 80% stake in Delta Steel Company, while the Nigerian government retained the remaining 20%. As part of the divestment process, residential properties and land owned by the steel company were allocated to employees and pensioners as part of their entitlements.  

Further details emerged that after taking control of the company, GINL used its assets as collateral to secure a loan from Ecobank. However, due to the company’s financial struggles, AMCON took over its assets in 2015 and later sold them to Premium Steel and Mines Ltd.  

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Gbeleyi accused AMCON of not seeking BPE’s input before proceeding with the transaction. While BPE was aware of the Ecobank loan, it had no knowledge of three additional banks that AMCON listed as creditors.  

Adding to the controversy, a petition from the Association of Concerned Residents of Camp 2, 4, and 5 of Delta Steel Company alleged that before AMCON and Premium Steel and Mines took over, the residents had been living on the company’s estate under contractual agreements.  

Representing the petitioners, Dr. David Emomotimi and Richardson Osifor claimed that since 2015, they had faced intimidation and harassment from security forces, allegedly acting on instructions from AMCON and Premium Steel and Mines, demanding that they vacate the property.  

Osifor further revealed that according to Corporate Affairs Commission records, GINL’s loan from Ecobank was valued at N250 million. However, AMCON allegedly inflated the debt to N7 billion.  

Responding to these allegations, AMCON’s legal representative, Chukwuemeka Umunakwu, defended the corporation’s actions, stating that AMCON’s acquisition of Delta Steel Company’s assets was necessary to prevent the company’s total collapse. He further explained that AMCON had purchased the assets for N22 billion and later sold them to Premium Steel and Mines for N32 billion.  

During the hearing, Kabiru Ademola, Director of Finance at the Accountant General of the Federation’s office, confirmed that the government had received N3 billion from the sale of 80% of Delta Steel Company’s assets to GINL. However, he noted that there was no official confirmation from the Central Bank regarding AMCON’s claim that it had deposited N32 billion into the Treasury Single Account (TSA). AMCON had yet to provide the necessary proof of payment to the investigative committee.  

Meanwhile, Dr. Armstrong Takang, the Managing Director and CEO of the Ministry of Finance Incorporated (MOFI), expressed concerns about the controversy surrounding the Delta Steel Company case, stating that his agency had chosen to distance itself due to the numerous unresolved issues.  

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Reflecting on the mismanagement of the steel company, Takang questioned Nigeria’s ability to maintain infrastructural developments established by previous generations.  

“If those before us, with limited exposure and education, could build such institutions, and our leaders today, with greater knowledge and resources, struggle to sustain them, it raises concerns about the future of this country,” he remarked.  

In response to the growing concerns, Ademorin Kuye, Chairman of the House Committee on Public Assets, announced that the committee had launched a formal investigation into the controversial sale. Additionally, AMCON and Premium Steel and Mines were directed to cease all forms of harassment against estate residents until the inquiry is concluded.  

Legal Proceedings Against Former AMCON MD’s Associate 

In a related development, a co-defendant in the fraud trial involving former AMCON Managing Director Ahmed Kuru has been convicted. On February 11, 2025, Sigma Golf Nigeria Limited, a company implicated in the financial scandal, was found guilty and sentenced by Justice R.A. Oshodi of the Special Offences Court in Ikeja, Lagos.  

Kuru, the primary defendant, is currently being prosecuted by the Economic and Financial Crimes Commission (EFCC) alongside Sigma Golf Nigeria Limited. The amended charges against them include conspiracy, theft, dishonesty, and criminal conversion, amounting to N20 billion.  

During the court session, prosecution counsel Rotimi Oyedepo, SAN, explained that the amendment of the charges was necessary due to the involvement of Sigma Golf Nigeria Limited, which was represented by Umaru Hamidu Modibbo.  

One of the charges reads:  

"Ahmed Kuru, Umaru Hamidu Modibbo, Ifie Sekibo (currently at large), and Sigma Golf Nigeria Limited, at some point in 2016 in Lagos, within the jurisdiction of this Honourable Court, conspired among themselves to commit felony by dishonestly converting the sum of Twenty Billion Naira (N20,000,000,000), belonging to the Asset Management Corporation of Nigeria, through Heritage Bank Limited, for the acquisition of Keystone Bank Limited." 

Another charge states:  

"On November 17, 2016, within Lagos jurisdiction, Ahmed Kuru, Umaru Hamidu Modibbo, Ifie Sekibo (at large), and Sigma Golf Nigeria Limited transferred a sum of Ten Billion Naira (N10,000,000,000) derived from an illegal act—stealing—intending to conceal its illicit origin and evade the legal consequences of their actions."

When arraigned, Kuru entered a plea of "not guilty," whilst Sigma Golf Nigeria Limited pleaded "guilty."  

This ongoing case has drawn significant public attention, highlighting broader concerns over financial mismanagement and corruption within Nigeria’s public institutions.  

The investigations and legal proceedings surrounding these cases continue, with further developments expected in the coming weeks.

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