ICPC Uncovers Alleged Diversion of ₦1.37 Billion in Kaduna Light Rail Project Under El-Rufai Administration

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has uncovered the alleged diversion of ₦1.37 billion from funds allocated for Kaduna State’s now-abandoned light rail project during the administration of former Governor Nasir El-Rufai. The Federal High Court in Kaduna has ordered the interim forfeiture of these funds, which were reportedly siphoned into a private account.

In October 2016, the Kaduna State Government entered into a joint venture agreement with Indo Kaduna MRTS JV Nigeria Limited for the construction of a light rail system. However, investigations revealed that payments totaling ₦11.1 billion were approved between December 2016 and January 2017, prior to the company’s official incorporation by the Corporate Affairs Commission in May 2017. Of these funds, ₦1.373 billion was allegedly diverted into a private account.

The ICPC initiated an investigation following a petition alleging large-scale misappropriation of Kaduna State funds by officials of the previous administration. The probe revealed that the funds intended for the light rail project were placed in a fixed deposit account, accruing interest, rather than being utilized for the project’s execution. In July 2019, ₦10 billion was refunded to the Kaduna State Government, leaving a balance of ₦1.046 billion, which, along with the accrued interest of ₦326.8 million, was allegedly diverted to accounts belonging to GTA Engineering Nigeria Limited, a subsidiary of Skipper Nigeria Limited.

In response to the ICPC’s findings, former officials of the El-Rufai administration have denied any wrongdoing, describing the commission’s actions as an abuse of power. They argue that the project was structured under a Build, Own, Operate, and Transfer agreement, requiring the Kaduna State Government to contribute 15% equity, with the remaining funds to be secured through a loan from the Indian Export-Import Bank. The project reportedly stalled due to the federal government’s failure to provide a sovereign guarantee, which was crucial for securing the necessary loan.

The court has directed the ICPC to publish a notice in two national newspapers, inviting any interested parties to come forward and present their claims before the court to contest the forfeiture. Further proceedings are scheduled for April 8, 2025, allowing time for anyone who believes they have a legitimate claim to the funds to appear before the court.

This development highlights ongoing efforts to address allegations of financial mismanagement and corruption within the previous Kaduna State administration. The outcome of the court proceedings will be pivotal in determining the final disposition of the allegedly diverted funds.