Exclusive: NDDC War Worsens, MD Queried As Management Explains $15b Railway MoU

The Managing Director, MD of the Niger Delta Development Commission, NDDC, Dr Samuel Ogbuku has been served a query over the purported Memorandum of Understanding, MoU for the construction of a coastal railway in the Niger Delta area, GWG.ng reports.

The query was issued by the chairman of the NDDC governing board, Ms Lauretta Onochie on the directive of the president, multiple sources privy to the development disclosed at the weekend.

GWG.ng reports that the query comes in the wake of a face off between the NDDC board and the management over many issues including the Public Private Partnership, PPP summit organized at Eko Hotel, Lagos last Tuesday. There was much outrage in the Niger Delta region by stakeholders with the decision to hold the summit and especially outside the region in Lagos.

The summit was boycotted by the NDDC board chairman, Ms Onochie and most of the board members including the chairman of the NDDC committee on PPP.

The highlight of the summit was the signature of a $15 billion agreement to build a railway linking the nine Niger Delta States.

However, following the summit, Ms Onochie disowned the summit and the MoU on the claim that the Managing Director lacked powers to sign a contract on behalf of the NDDC, a duty she quoted from the establishment act was vested in the chairman of the commission. She further disclosed that the contract signed by the MD was superfluous on the claim that the Federal Executive Council had in August 2021 awarded a similar contract.

Arising from the controversy, GWG.ng gathered that Ms Onochie on the instruction of the president has now issued the NDDC Managing Director a query asking him to reply within 72 hours why disciplinary actions should not be taken against him over the issue.

The query specifically drew the attention of the MD as to why he went ahead to sign the new contract when as a public officer he should have known of the August, 2021 contract awarded by the Federal Executive Council, FEC.

It could not be confirmed if the query has been replied.

However, the NDDC’s director of corporate affairs, Dr Ibitoye Abosede in a statement made available to GWG.ng explaining the controversies and the decision to forge the MoU said:

“For those who may not know, the Atlanta Global Resources Inc deals 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.

“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.

“We are also aware that there must be sovereign guarantees which can only be granted by the Federal Government, after which it will seek the approval of the National Assembly.

“What we signed on April 25 is simply the opening phase that will determine how far we will go, but it definitely showcases how interested the international partners are in tapping into the Niger Delta region. They are swarming in droves. This indicates that we are looking at a bright and prosperous Niger Delta from the prism of the PPP.

“We expect that there will be challenges, especially at this initial stage, but that will not discourage us in any way. Understandably, going public to celebrate our little success is attracting bigger investors and interests. Out of ten, one or two might be successful to the benefit of the region.

“The prospects of realizing the rail network are very good and we are confident that we will succeed ultimately.

“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.”

“We urge our stakeholders to give us the necessary support to ensure that we all succeed in this venture,” the statement which came ahead of the query to the NDDC MD said.

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