Nigerian Government Addresses Criticism Of MoU With UK Firm For PH-Abuja Rail Line

Nigerian Government Addresses Criticism Of MoU With UK Firm For PH-Abuja Rail Line

The Federal Government has responded to the backlash surrounding the Memorandum of Understanding (MoU) it recently signed with Messrs MPH Rail Development Limited, a United Kingdom (UK) firm, for the construction of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line…….READ ALSO Nigerian Government Mourns Ghana High Commissioner, Rashid Bawa

The MoU, inked by the Ministry of Transport on March 13, 2024, sparked controversy among Nigerians, with some expressing doubts about the UK firm’s capability to deliver the project, citing its purported newness in the rail construction industry.

Critics also highlighted the existence of the Warri—Itakpe Standard Gauge Rail and suggested extending this route from Warri to Port Harcourt and from Itakpe to Abuja to create the Port Harcourt—Abuja Standard Gauge Rail, as proposed by former presidential aide Tolu Ogunlesi.

In response, Minister of Transportation Sa’idu Ahmed Alkali clarified the situation in a statement released on Sunday by Olujimi Oyetomi, Director of Press and Public Relations at the Ministry. Alkali explained that the initiative was still in its preliminary stages and clarified the nature of MoUs as non-binding agreements intended to outline each party’s intentions.

He emphasized that the MoU stemmed from an unsolicited proposal presented by the British African Business Alliance (BABA), an association based in the UK with interests in African businesses. The proposal, initially submitted to the ministry in August 2019, aimed for 100% private sector funding for the project, without loans or debt to the Nigerian government or its agencies.

Alkali further noted that the proposal had undergone necessary procedures, including submission to the Infrastructure Concession and Regulatory Commission (ICRC), which granted approval and issued a conditional Outline Business Case (OBC) Certification in December 2023. He attributed delays in the process to factors such as the COVID-19 pandemic.

The statement sought to provide clarity on the process and rationale behind the MoU, addressing concerns raised by the public regarding the involvement of the UK firm in the rail project.

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