— But board says MoU is mere preliminary step
By Ignatius Chukwu
The simmering hostilities in the Niger Delta Development Commission (NDDC) seems to explode at last as the board led by Lawretta Onochie has declared the $15Bn rail project deal with a US based company as null and void.
In a statement Friday, Onochie declared that the NDDC has not and could not have signed an MOU worth $15 billion (USD) without the Board and FEC’s approval.
‘The so-called MOU signed with Atlanta Global Resources Inc. “AGRI”, is hereby disowned by the Board and declared null and void.”
Details:
Onochie said her attention was drawn to newspapers reports of the signing done by the NDDC with a US firm, “Atlanta Global Resources Inc.” and the NDDC.
She said everything about the “MOU” was illegal and sited several sections of the Act that empowered only the board to sign such deals.
due to the following reasons: By the act establishing the NDDC(Act No 6, of 2000), it is the Chairman of the
“And the Supplementary provision of the Act as relating to the Board (Section 4, sub-section 1) clearly retains the Seal of the Commission in the Office of the Chairman.”
She also threw stones at AGRI, saying: “The US company’, Atlanta Global Resources Inc., has no expertise nor experience in any form of construction, let alone, Railway construction. This company is a Management and Export Consulting Firm is without known notable Directors.
“Thus, the signing of an MOU to the tune of $15 billion (USD) with such an organisation is not only suspect but dubious.
“The Federal Executive Council (FEC), having recognised the importance of infrastructure in the Niger Delta region had awarded the Contract for the same project in 2021 at the sum of $11.7 billion for the construction of a Mega railway from Lagos to Sagamu, Sagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin-City to Sapele, Sapele to Warri, Warri to Yenogoa, Yenegoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa and to Ikom, Obudu Ranch with branch lines from Benin-City to Agbor, Ogwashi-Uku, Asaba, Onitsha and Onitsha Bridge and then Port Harcourt to Onne Deep Sea Port.”
Onochie said it is shocking that after the FEC, the highest ruling body in the country, had done this, that anyone would be signing an MOU on behalf of the NDDC and the Federal Government of Nigeria for the same project in 2023 without due process nor approval by the FEC in the twilight of the Muhammadu Buhari administration.
“The same clumsy, shady and hazy transactions of the past in NDDC, that had bedevilled and stultified identifiable progress in the past, was rested with the “Forensic Audit” and the Inauguration of a New Board, with the Sanitisation of the Commission as its mantra. However, old habits die hard. And some individuals (within and without the Commission) still retain the retrogressive mindset that has held the Commission down for the past 22 years. We cannot remain in the old dubious path.
“The Present Board is set on Transparency, Equity, Justice and Equality, and ready to midwife and embrace other policies and programmes that would uplift and improve the lives of the good people of Niger Delta. With dilligence, perseverance, persistence and commitment, this Vision would come to pass.
“We, therefore, call on all our partners and stakeholders in this quest – CBN (TSA), The Ministry of Niger Delta, The National Assembly, Our nine States’ Governors (Advisory Board), Our Traditional rulers, Youth Population, etc., to take note.”
Reacting, the NDDC management said
NDDC appreciates the need to be seen to be accountable and transparent as it collaborates with its stakeholders in the arduous task of developing the Niger Delta region.
The statement signed by the corporate affairs director, Ibitoye Abosode, said the foundational process may have been misconstrued by some persons to mean that the NDDC has signed the Engineering, Procurement and Construction, EPC, contract.
“We have been inundated with enquiries over what is ordinarily one of the preliminary steps necessary for the actualization of a partnership arrangement with the private sector.
All we signed at the PPP Summit was a basic MOU to commence the preliminary processes of feasibility and viability of the rail project. It did not include any agreement on details.
“It is only after the preliminary studies, that the finance appraisals will be done and then the civil engineering procurements and the locomotive hardware will be considered.”
He defended Atlanta Global Resources Inc as competent to deal with financing for Industrial products, infrastructure projects, agriculture equipment, capital equipment financing etc. “They came recommended by a reliable US financial institution, especially for the deployment of US-produced locomotives.
“The NDDC is aware that a partnership agreement of a massive project such as a railway network involves many international and national financial protocols. It has many ramifications at the highest level of government. It is also not unaware of the Federal Government contract of 2021 for rail line construction, however the proposed network covered by the MOU is on a different alignment.”
