Reps probe multibillion railway projects across Nigeria

The House of Representatives on Thursday directed its committee on transport to carry out a holistic and thorough investigation on the state of the railway transport system, level of contracts awarded and their execution for the modernisation of railway projects across the country from 2007 till date.

While moving the motion, the lawmaker said that ” the importance of an efficient rail system is unquantifiable to an economy, as it would provide the means for movement of people and goods and keep off the roads many of those heavy duty vehicles causing havoc on the roads;

Painting pathetic state of the country’s rail system, the lawmaker said that “at independence in 1960, Nigeria inherited about 3,000kms of rail tracks from the British colonialists, but had only succeeded in adding less than a thousand rail tracks since then”.

According to him, “in its bid to revive the sub-sector, the military government of Late General Sani Abacha awarded a $500 million contract to China Civil Engineering Construction Corporation (CCECC) to modernise the Lagos-Kano rail line

“Despite the loss the country incurred following the failure of CCECC to execute the contract, the Administration of President Olusegun Obasanjo re-awarded the contract to the company for the sum of $8.5 billion;

“Informed that mid-way into its execution, the Administration of late President Umaru Musa Yar’Adua split the Lagos-Kano railway rehabilitation into two, awarding the 488km Lagos-Jebba rail track to CCECC for $81.3 million and the longer 827kms Jebba-Kano axis to Conslan West Africa at the same cost, while also signing a $180 million contract with General Electric for the manufacture of twenty five (25) locomotives.

“Further aware that the Administration of former President Goodluck Ebele Jonathan had approved the construction of the Lagos-Ibadan standard gauge rail double track with double formation under addendum No. 2, second segment of the modernisation of Lagos-Kano railway project to China Civil Engineering Construction Corporation for $1,487,782,196.00 aside the over N104, 000, 000, 000 in budgetary allocations to the Nigeria Railway Corporation (NRC) during the same period. 

“Also informed that former President Jonathan also conveyed a change in the scope of work for the design and construction of Abuja rail project (lots 1 and 3) from the initial work plan of 60.67km to 45.245km and awarded it at the cost of $823,545.87.

“Cognizant of the fact that President Muhammadu Buhari had, in April 2017, sought the approval of the National Assembly for the Federal Government to secure a loan from the China Exim Bank for the modernisation of the Kano-Kaduna segment for $1.46 billion.

“Also cognizant that a contract agreement worth $11.117 billion for the construction of the Lagos-Calabar coastal railway line has been concluded and awarded by the present Government to China Civil Engineering Construction Corporation (CCECC) to cover Port-Harcourt, Calabar, Uyo and Aba.

“Concerned that in spite of the several billions of Naira expended by successive administrations for the revitalisation of railway transportation, the sector has largely remained comatose.

“Desirous of making the railway transport system a means of boosting job creation opportunities and reduction of accidents, as well as wear and tear on national roads network and also block all leakages that have occasioned previous disbursements of funds without commensurate results,”  the lawmaker stated.

The House resolution followed a motion sponsored by Chairman, House committee on Public Accounts, Honourable Kingsley Chinda entitled, “Need to Investigate the Huge Debts Owed Indigenous Companies by International Oil and Gas Companies (IOCS)”.

According to him, “several indigenous companies that had rendered services, executed contracts or supplied items to International Oil and Gas Companies (IOC’s) operating in the country are being owed huge sums of money by those IOC’s, as a result of which those Companies are going through difficult times”.

To this end, he said that, “Nigerian Oil and Gas Industry Content Development Act, Cap. N124A, Laws of the Federation of Nigeria, 2004 which, among other things, provides for the development of Nigerian content, as well as supervision, co-ordination, monitoring and implementation of Nigerian content in the Oil and Gas industry in the country.”

“Those contracts, which run into millions of Naira or Dollars and can span over short or long durations, are very significant to and serve as the life wire to several of those companies and the main source of livelihood for the contractors.

“The urgent need to save those indigenous firms and contractors from likely bankruptcy and liquidation by reason of the huge debts being owed them, a development that would lead to job losses with the attendant hardship it will bring in its wake,” he stated.