Recently, the Niger Delta Development Commission (NDDC) board disowned the $15billion memorandum of understanding (MoU) reached between the commission’s management and a United States based outfit for the construction of a coastal railway line.
Chairman of the NDDC governing board, Ms Lauretta Onochie in a terse statement described the MoU as shady, illegal and of no effect saying that the management could not have signed such an agreement without the approval of the board.
Grow your business with us
Besides, noting that a similar contract had been approved by the Muhammadu Buhari led Federal Executive Council, FEC in 2021, she expressed outrage at the audacity of the management in forging ahead with the same mindset of feasting on the collective patrimony of the region for its private interests. The peak of the crisis was when the management led by the managing director, Dr Samuel Ogbuku held a PPP summit at Eko Hotel, Lagos with most of the board members including the chairman of the NDDC PPP committee Gbenga Edema absent.
The highlight of the PPP summit was the disclosure of the signing of a $15 billion MOU between the NDDC and a US firm for the construction of the mega rail project. Dismissing the PPP and the actions of the management, Ms Onochie in a statement titled, “Re: $15Billion (USD) MOU BETWEEN NDDC AND A US FIRM FOR MEGA RAIL PROJECT: A REFUTTAL” said that her attention and the entire Board have been drawn to a publication in some National dailies of the purported signing of a Memorandum of Understanding (MOU) between a US firm, “Atlanta Global Resources Inc.” and the NDDC, whose Board she chairs, for the “construction of a mega rail project across the Niger Delta, from Lagos to Calabar.” She said that this was done without her knowledge and without the authorisation nor consent of the Board, adding that everything about this shady “MOU” is illegal due to the following reasons: “(a) By the act establishing the NDDC (Act No 6, of 2000), it is the Chairman of the board that is solely vested with the power to sign MOUs with any organisation. Part II of the NDDC Act, Section 8, sub sections (a) and (e), among other provisions, specifically state inter Alia; The Board shall have power to: –
“(a)manage and supervise affairs of the Commission… “(e)enter into such contracts as may be necessary or expedient for the discharge of its functions and ensure the efficient performance of the functions of the Commission. 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 alleged that the “US company”, Atlanta Global Resources Inc., has no expertise nor experience in any form of construction, let alone, railway construction, adding that the company is a management and export consulting firm without known notable directors, as a result the signing of an MoU to the tune of $15billion (USD) with such an organisation is not only suspect but dubious. She revealed that 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.
“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.”
She said 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 and that with diligence, perseverance, persistence and commitment, this vision would come to pass.
“We, therefore, call on all our partners in this quest – CBN (TSA), The National Assembly, Our nine States’ Governors (Advisory Board), etc., to take note,” she said. She reiterated that NDDC has not and could not have signed an MOU, worth $15 billion (USD) without the Board and FEC’s approval, insisting that “The so-called MOU signed with Atlanta Global Resources Inc. “AGRI”, is hereby disowned by the Board and declared null and void.”
Indeed, Lauretta Onochie Chairman, NDDC Governing BOARD and the board deserve the commendation of all well-meaning Nigerians for her role in stopping another rip off of the Niger Delta. However, in statement titled, “We Signed MOU for Preliminary Processes for Railway Network,” and signed by Director, Corporate Affairs, NDDC, Ibitoye Abosede, the NDDC management said, “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. “Obviously, many things will be involved and it comes in the mold of the NLNG train 7. Again, the ICRC and the Nigerian Railway Corporation, NRC, as well as the Ministry of Transport will be part of the negotiations. In addition, EPC contractors and hundreds of other international consultants will be involved.” It also claimed that “The current Board and Management of the NDDC have resolved to do things differently so as to effectively drive sustainable development in the Niger Delta region. To give effect to this, we decided to use the PPP model to provide alternative sources of funding for key development projects and programmes.”
Whichever way one looks at this it does not look good. There is nothing that the management can say to justify its action when it failed to follow the due process. We keep emphasizing that the process is far more important than the final outcome. Embarking on such gigantic project without the support of the board showed that no lessons has been learned from the forensic audit of the NDDC which was necessitated by corruption that characterized previous managements and boards.
A lot of money has been wasted in Niger Delta as a result of corruption. While there is no accurate data it is believed that the Federal Government has channelled a conservative estimate of N3 trillion for the development of the region. Some sources put the figure at N15 trillion. The NDDC claims to be owing contractors a whopping N2 trillion. While the incidence of militancy and oil theft seems to have abated due to some other extra measures by the Federal government, especially the implementation of the Presidential Amnesty Programmes for repentant militants, crass impunity and abuse of office appear to have gained ascendancy in the management of the commission. The new Board should continue to show that it is no longer business as usual at NDDC and save the region from underdevelopment.
–From the Editorial Desk of UNITY TIMES