The Federal Government has responded to the controversy surrounding the Memorandum of Understanding (MoU) it signed with Messrs MPH Rail Development Limited, a United Kingdom firm. The MoU, inked by the Ministry of Transport on March 13, 2024, was aimed at constructing the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.
Following the announcement of the MoU, concerns were raised by some Nigerians on social media platforms, particularly X, regarding the UK firm’s capability to execute the project. Critics pointed out that the company is relatively new to the rail construction industry. Notably, former presidential aide Tolu Ogunlesi highlighted the existence of the Warri—Itakpe Standard Gauge Rail and proposed extending this route from Warri to Port Harcourt and from Itakpe to Abuja to create the Port Harcourt—Abuja Standard Gauge Rail.
In response to the controversy, Minister of Transportation Sa’idu Ahmed Alkali issued a statement on Sunday, represented by Olujimi Oyetomi, Director of Press and Public Relations at the Ministry. Alkali clarified that the initiative was still in its preliminary stages. He explained that an MoU is a non-binding agreement outlining each party’s intentions and does not constitute a legally binding contract. The MoU stemmed from an unsolicited proposal by the British African Business Alliance (BABA), submitted to the ministry on August 27, 2019.
The proposal, accompanied by an Outline Business Case, was submitted to the Infrastructure Concession and Regulatory Commission (ICRC) on December 8, 2023. One of the key aspects of the proposal was BABA/MPH’s commitment to achieve 100% private sector funding for the project without loans or debt to the Nigerian government or its agencies, as stipulated in Article 3.3 of the MoU. The ICRC granted approval and issued a conditional OBC Certification on December 27, 2023. It’s worth noting that the time gap between the initial proposal and the ICRC OBC Certification was partly attributed to the impact of COVID-19.
