The National Assembly Joint Committee on Land Transportation has summoned the Managing Director of the Ministry of Finance Incorporated (MOFI) to appear before lawmakers over the award of railway modernisation contracts valued at about US$3 billion, citing alleged irregularities in the procurement process.
The resolution was reached during a joint committee session on Tuesday, where the Chairman of the Senate Committee on Land Transportation, Senator Adamu Aliero, questioned the circumstances surrounding the award of rail contracts covering the Lagos, Kaduna and Kano corridors.
Aliero expressed concern that the contracts were reportedly handled by MOFI without the involvement of the Federal Ministry of Transportation, the ministry constitutionally responsible for railway development and oversight through the Nigerian Railway Corporation (NRC).
According to him, the committee found it “bizarre and disturbing” that an institution such as MOFI, which it argued lacks the technical engineering expertise required for railway construction, could oversee projects of such magnitude.
“We find it bizarre and disturbing that contracts of such magnitude were awarded by the Ministry of Finance Incorporated, an institution that does not have the engineers or technical professionals required to handle the technical aspects of railway construction,” Aliero said.
The committee resolved that the hearing could not continue in the absence of officials from the Federal Ministry of Finance and MOFI, directing both agencies to appear before lawmakers to explain the circumstances surrounding the contract awards.
Lawmakers are seeking detailed explanations on the procurement process, funding sources, project implementation timelines, and the criteria used in awarding the contracts.
The committee also requested information on the engineering designs, project supervision arrangements, Environmental Impact Assessments (EIAs), as well as compensation and resettlement plans for communities that could be affected by the rail projects.
Aliero further questioned how contract bids and approvals were processed without the participation of the Federal Ministry of Transportation, describing the development as one that raises serious procurement and governance concerns.
He stressed that the National Assembly has a constitutional duty to ensure transparency, accountability and value for money in the utilisation of public resources.
“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 stated.
The committee maintained that contracts running into billions of dollars should not be awarded without the active involvement of the supervising ministry and insisted that the Ministry of Finance and MOFI must appear before lawmakers to provide full explanations.
Senator Aliero subsequently excused the officials present at the hearing, informing them that they would be invited back after the committee had received clarifications from the Ministry of Finance and MOFI regarding the controversial railway contract awards.
