Politics

Outrage As Tinubu Govt Signs Rail Line MoU With UK Firm, Jointly Owned By Former Lagos State House Speaker, With No Rail Construction Experience

The Ministry of Transport has signed a Memorandum of Understanding (MoU) with MPH Rail Development Limited, a United Kingdom (UK) firm, to implement the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line project.

In a statement released via its X page last Friday, the ministry said the company is expected to manage the design, construction, commissioning, operation, and eventual transfer of the standard gauge rail line.

The ministry added that the MoU was signed under a public-private partnership framework, adding that the company is registered in the United Kingdom (UK).

It said the signing followed the approval of the outline business case and the issuance of a compliance certificate by the Infrastructure Concession and Regulatory Commission (ICRC).

This clearance, it said, enables the firm to focus on compiling the necessary documentation for the Federal Executive Council’s (FEC) approval to advance the project.

The MoU signing ceremony was attended by the Permanent Secretary of the Ministry of Transportation, Olufemi Oloruntola, the Director of Rail Development, Zirra Fimbarr, and the Director of Legal Services, Pius Oteh.

Profile of the company

The company was formed by one Andrew James, a British citizen, in 2019 and went on without any relationship with the Nigerian government or private sector until August 24, 2023, when the company appointed Osinowo Rotimi as the first director with a Nigerian background.

Subsequently, Osinowo Sayeed was also appointed as a director in January 2024.

According to The Cable, the company has filed as a dormant organisation three times since its registration in 2019.

Other discrepancies pointed out by disgruntled Nigerians include the company’s lack of a website and its lack of track record of engaging in rail construction since its incorporation in 2019.

Social media users have criticized the federal government for signing an MoU with a company that was incorporated less than five years ago, on September 26, 2019.

Others have described it as a PI&D saga in the making, adding that a project of such magnitude should not be entrusted to a young company with an unknown history.