Federal Government Reacts to Controversy Surrounding MoU for Rail Line Development
The Ministry of Transport signed a Memorandum of Understanding (MoU) with Messrs MPH Rail Development Limited, a United Kingdom firm, on March 13, 2024, to build the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.
After the announcement of the MoU, concerns were raised by some Nigerians on social media about the UK firm’s experience in the rail construction industry.
Among the critics was former presidential aide Tolu Ogunlesi, who suggested extending an existing project to create the Port Harcourt—Abuja Standard Gauge Rail.
Minister of Transportation, Sa’idu Ahmed Alkali, responded to the controversy, clarifying that the initiative is still in its early stages.
According to Alkali, the MoU is a non-binding agreement that sets out the intentions of each party involved in the project.
The MoU stemmed from a proposal by the British African Business Alliance, presented to the ministry in August 2019. The proposal focused on achieving 100% private sector funding for the project, without any loans or debt to the Nigerian government.
The Infrastructure Concession and Regulatory Commission granted approval for the proposal in December 2023, with a conditional OBC Certification.
COVID-19 played a significant role in the delay between the initial proposal and the ICRC certification, Alkali explained in the statement issued on Sunday.
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