TheCable

Some Nigerians have expressed displeasure over the signing of a memorandum of understanding (MoU) between the ministry of transportation and MPH Rail Development Limited.

The company, registered in the UK, is expected to manage the design, construction, commissioning, operation, and eventual transfer of the Port Harcourt-Enugu-Calabar-Abuja standard gauge rail line.

“The Minister of Transportation, Sen. Said Alkali on behalf of @NigeriaGov has signed an MoU with Messrs MPH Rail Development (UK) Limited for the design, construction, operation & transfer of the Port Harcourt–Enugu –Calabar–Abuja SGR Line on a PPP basis,” the ministry wrote on its X page.

The Minister of Transportation, Sen. Said Alkali on behalf of @NigeriaGov has signed an MoU with Messrs MPH Rail Development (UK) Limited for the design,construction,operation & transfer of the Port Harcourt–Enugu –Calabar–Abuja SGR Line on a PPP basis.https://t.co/li81W7w04C pic.twitter.com/gEF9pJNDxi

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— Federal Ministry of Transportation (@MinTransportNG) March 13, 2024

The ministry 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, the ministry said, enables the firm to focus on compiling the necessary documentation for the federal executive council’s (FEC) approval to advance the project.

In another statement, the ministry said vital documents required for the project’s progression include a comprehensive feasibility study report, a complete business case study, an environmental and social impact assessment, the development of a resettlement action plan, and the formulation of a financial model to facilitate project implementation.

The ministry said this would ensure the transfer of the project to the government under a PPP arrangement without incurring loans or debts for the Nigerian government.

However, social media users have knocked the agency for signing an MoU with a company that was only incorporated less than five years ago — September 26, 2019.

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

Checks by TheCable confirmed that 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 untill 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.

Further checks showed that the company had filed as a dormant organisation three times since its registration in 2019.

Other discrepancies pointed out by disgruntled Nigerians are that the company, since its incorporation in 2019, has no track record of engaging in any rail construction business and lacks a website.

Here are the reactions of some Nigerians to the deal.

SCAM ALERT:

1. MPH Rail Development Limited is a UK company incorporated in 2019, with 4 Nigerian directors added late 2023.

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2. There are no records of past projects by this company.

3. This company has no website, and there are no records of any previous projects done.

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4.… pic.twitter.com/szvfIAvADE

— That Naija Guy™ (@IamThatNaijaGuy) March 16, 2024

This information is very vital indeed. It's therefore all Nigerians shall put their eyes on the contractors handling projects in their communities. This will no doubt reduce corruption and projects abandoning attitude of Nigeria Government and Contractors.

— Mal. Siraj Mashi (@SirajMashi) March 16, 2024

It is still an MOU, so I am guessing it will still go through FEC, BPE and ICRC due diligence

— Madam President (rtd) Iyabo Arinola Ifeoma Awokoya (@iyaboawokoya) March 16, 2024

THIS IS ANOTHER BIG FRAUDULENT CONTRACT. GOVT PURCHASE PROCEDURE WASN’T COMPLIED WITH. HOW CAN THE GOVT AWARD A CONTRACT OF SUCH MAGNITUDE WITHOUT FOLLOWING DUE PROCESS? WHEN WAS THE TENDER FOR THE CONTRACT RUN? WHO WERE THE OTHER BIDDERS ? THIS RAILWAY IS

— KWiwa (@KenWiwa4) March 15, 2024

@CCECC8 has experience, visible track records in Nigeria and africa but this minister went to sign MOU with a UK coy for rail and not even a proper UK coy but one SPV. We barely survived P&ID what's this again ooo?

— Bolaji (@bolsaid) March 16, 2024

@officialABAT should matter of urgency arrest this purported SCAM that @saiduaalkali seems to be embarking on with the so-called MPH Rail Dev Ltd. @officialEFCC and @icpcnigeria
should get involved as everything about the said Firm looks questionable.

This is a BIG SCAM…

— ASIWAJU AKANBI ADEYEMI ® (@planetaby) March 16, 2024

This is another railways am loading in Nigeria.@MinTransportNG I challenge you to name one railway project successfully completed by Messrs MPH Rail Development on this earth, in heaven or anywhere in the universe. How would they deliver?
Who does a railway project on PPP basis?

— Fear Kogi Politicians (@AndyHReal) March 16, 2024

This right here, Nigerians, is what is known as an SVP (as used by @atiku ) to fliz Nigeria.

This Minister is going the same path? This company has no track records and very suspicious, why go through the UK when we've had wonderful records with other companies on ground!

— Orelekan Runsewe (@OmoAdetilewa) March 16, 2024

My sixth sense tells me this is another PI&D in the making. @officialABAT @PBATMediaCentre please scrutinize this MOU that's looking like a potential disaster.

— Mercator (@olumideajala) March 16, 2024