Nigerians demand probe of inflated Lagos-Ibadan rail construction contract

Nigerians have called on the government to probe an allegation that the contract for the construction of the Lagos-Ibadan rail line was inflated by about 360 per cent.

The Nigerian government said the contract for the construction of the 156-kilometres rail line, which was awarded to the China Civil Engineering Construction Corporation (CCECC) in 2016, cost taxpayers about $2 billion.

CCECC is a subsidiary of the Chinese engineering conglomerate, the China Railways Construction Corporation (CRCC).

But, the call for the probe of the contract followed recent reports that the Ghanaian government agreed to pay $2 billion to another subsidiary of the Chinese firm for the construction of a similar rail line estimated at more than thrice the length of the Nigerian system.

Last March, the Ghanaian government announced the signing of a $2 billion Memorandum of Understanding with the CRCC to finance the rehabilitation and construction of a 560-kilometre standard gauge railway line in the country.

Although reports said the MoU with the China Railway Construction Corporation with CRCC (International) has since been revoked for alleged “breach of confidentiality”, Nigerians are still interested in knowing how a similar contract back home cost more.

The Ghanaian rail line expected to run through designated stations and terminals at Aflao and Elubo was more than 414 kilometres longer than the Nigerian version of the project awarded to the same Chinese engineering construction conglomerate.

Under the agreement, Mr Ghartey said the Ghanaian government would not be funding the railway lines construction.

“The funding is to be arranged by CRCC,” he said. “Besides CRCC, another Chinese Company, Sinochem, one of the largest Oil Companies in China, is equally prepared to provide up to $3 billion as funding of railway construction projects throughout the country, backed by Crude Oil futures.”

Prior to the signing of the agreement, reports said Mr Ghartey travelled to Nigeria at the invitation of his Nigerian counterpart and former Minister of Transportation, Rotimi Amaechi.

The visit of the Ghanaian Minister of Railway Development to Nigeria, it was reported, was to specifically inspect and assess the construction of the railway system handled by the Chinese Conglomerate.