Federal Government Responds to Criticism Over Rail Line MoU with UK Firm

The Federal Government has issued a response addressing the recent controversy surrounding the Memorandum of Understanding (MoU) 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.

Following the announcement of the MoU signed by the Ministry of Transport on March 13, 2024, concerns emerged on various social media platforms regarding the UK firm’s capability to undertake such a significant project, given its perceived newness to the rail construction industry.

Critics, including former presidential aide Tolu Ogunlesi, advocated for revisiting existing projects, suggesting an extension of the Warri—Itakpe Standard Gauge Rail route to cover the Port Harcourt–Abuja route.

Minister of Transportation, Sa’idu Ahmed Alkali, addressed the controversy in a statement released on Sunday by Olujimi Oyetomi, Director of Press and Public Relations of the Ministry. Alkali clarified that the initiative was still in its preliminary stages and emphasized the non-binding nature of the MoU.

Alkali explained, “A Memorandum of Understanding or MoU is a non-binding agreement that states each party’s intentions to take actions, conduct a business transaction or form a new relationship. It is not a legal binding agreement.”

He further elaborated on the origins of the MoU, stating that it stemmed from an unsolicited proposal by the British African Business Alliance (BABA), which was initially submitted to the ministry in August 2019. The proposal aimed to achieve 100% private sector funding for the project, with no loans or debt to the Nigerian government or its agencies.

Highlighting the regulatory process involved, Alkali noted that the Outline Business Case was submitted to the Infrastructure Concession and Regulatory Commission (ICRC) in December 2023, with approval granted later that month, albeit with certain conditions.

Alkali attributed the delays in the process to the impact of the COVID-19 pandemic, emphasizing the meticulous scrutiny and approval process required for such projects.