06/03/2025
On the alleged forfeiture this statement was very clear but I understand certain people want to impress their paymasters
A Statement by the members of the Kaduna State Executive Council (2015-2023) - 18th February, 2025
Re: “ICPC seeks forfeiture of N1.3b for Kaduna Light Rail project.”
The attention of the former members of the Kaduna SEC (2015 to 2023) has been drawn to a biased and obviously twisted report about the attempt by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to get a court order seeking the forfeiture of N1.3b said to have been allegedly paid into the account of an unregistered company in respect of the Kaduna Light Rail Project. We are obliged to set the records straight, if only for the sake of prosperity by providing the following facts and clarifications:
1. First, we wish to state that the Kaduna Light Rail Project came about as part of the infrastructural revolution of the Mallam Nasir El-Rufai administration to turn Kaduna into a modern and developed state. The project was conceived as a landmark legacy project by the State Executive Council in October 2015, to be funded with part of the just secured World Bank Performance for Results loan of about $350 million.
2. Given the magnitude of the project, which was estimated to cost between US$600-700 million, we needed foreign collaboration and funding. We therefore started with adverts in reputable local and international publications including The Economist Magazine. A copy of the advertisement for Expression of Interest dated November 2015 in the national dailies is attached as Annex 1.
3. In the end, an Indian company known as Skipper secured the award of the project following the competitive tender process. They were to be responsible for securing a loan of about 85% of the project cost from the Indian Export Import Bank, whilst Kaduna State Government was to pay 15% as equity. The contract term was consequently changed from an EPC to a Build, Own, Operate and Transfer so that Skipper will be responsible for ensuring the efficient operations of the light rail system and the repayment of the loan. A copy of the Public Private Partnership agreement is attached as Annex 2.
4. In order to secure the loan from Indian Eximbank, we were required to submit a Detailed Project Report/Feasibility Study, for which a well known French group with requisite expertise – Systra, was engaged along with GTA Engineering Limited. After working for about six months with a team of experts from France, UAE and India, they submitted a 291-page feasibility report – the cost of which was $2.8m (then about N890million). A copy of the Feasibility Study is attached as Annex 3.
5. A memo was then submitted to the Kaduna State Executive Council (Exco) in November, 2017 to seek its approval/ratification of the report and payment which was duly granted. Then came a time that we wanted to do the ground-breaking, a request was duly sent to the Governor for the ground-breaking and the release of the first tranche of N1.2b deposit to the Joint Venture company’s account – Indo Kaduna Mass Rail System.
6. An account was opened for the joint venture company with Sterling Bank. The Kaduna State Government was required to fund the account as part of its 15% equity contribution and a gesture of good faith. The approved payment of N1.2 billion was transferred to the new account whilst Skipper was handling the incorporation of the joint venture company with the Corporate Affairs Commission.
7. Based on the Detailed Project Report and the Feasibility Study prepared by Systra and GTA Engineering, we secured an in-principle approval from the Indian EXIM Bank in January 2017; a copy of which is attached as Annex 4. One of the conditions precedent to the final approval of the loan from the Indian EXIM Bank is the provision of a Sovereign Guarantee by the Federal Government of Nigeria, which we initially understood would be made available to Kaduna State.
