National Assembly Summons MOFI Over $3 Billion Railway Contracts

The National Assembly Joint Committee on Land Transportation has called on the Managing Director of the Ministry of Finance Incorporated to appear before lawmakers to explain the award of railway contracts worth about US$3 billion.

The directive was issued on Tuesday during a joint session of the committee. Senator Adamu Aliero, who chairs the Senate Committee on Land Transportation, said the panel had found what it called serious irregularities in how the contracts for railway modernisation were awarded.

The projects in question cover major routes in Lagos, Kaduna and Kano. According to the committee, the Federal Ministry of Transportation was left out of the entire procurement process, despite being the ministry constitutionally responsible for railway development through the Nigerian Railway Corporation.

Advertisement

Senator Aliero questioned the rationale behind assigning such large contracts to MOFI. He noted that the institution does not have the engineers or technical staff needed to manage the construction and supervision of railway infrastructure.

“We find it bizarre and disturbing that contracts of such magnitude were awarded by the Ministry of Finance Incorporated,” he told the hearing. The comment drew attention to the mismatch between MOFI’s mandate and the technical demands of rail projects.

Because of the concerns raised, the committee resolved that the session could not continue until officials from the Federal Ministry of Finance and MOFI appear to give an account. Lawmakers said they need a direct explanation of how the awards were made.

The agencies will be asked to provide details on several fronts. These include the procurement process, sources of funding, project timelines, and the criteria used to select contractors for the three cities.

The committee also requested technical documents. It wants to see the project designs, the designated supervising authority, Environmental Impact Assessment reports, and the plans for compensating and resettling communities that may be affected by the construction.

Aliero further asked how bids and proposals were approved without input from the Federal Ministry of Transportation. He described the process as one that raises serious questions about due process and oversight in public spending.

“As members of the National Assembly, elected by the Nigerian people, we have a constitutional responsibility to ensure that every kobo of public funds is spent prudently and judiciously and that Nigerians get value for money,” he said.

The committee stressed that contracts running into billions of dollars cannot be awarded without the supervising ministry. It insisted that the Ministry of Finance and MOFI must come before lawmakers to account for the decisions.

After laying out its demands, the committee excused the officials who were present at the hearing. Aliero said they would be invited back once the Ministry of Finance and MOFI have appeared to address the issues raised.

Add a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use
Advertisement