The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation into the alleged financial misappropriation in the Kaduna State Light Rail Project during the administration of former Governor Nasir El-Rufai.

The investigation was initiated following a petition by M. Yahaya, a lawyer from NUS’ AB Chambers, Abuja. The petition, dated June 27, 2024, and received by the commission on July 1, 2024, accused officials of the previous administration of mismanaging state funds through a purported joint venture agreement with Indo Kaduna Mrts JV Nigeria Limited.

According to documents reviewed by the ICPC, the Kaduna State Government signed the agreement on October 18, 2016, for the construction of a light rail system. However, the company had not been incorporated at the time. Despite this, its promoters opened a bank account at Sterling Bank on December 15, 2016, and within a month, the account received N11.1 billion from various Kaduna State Government accounts.

The ICPC stated that the payments, approved by then-Governor El-Rufai, were made in tranches, with an initial deposit of N890.3 million from the Kaduna State Treasury on December 23, 2016. Additional payments of N2.3 billion and N7.9 billion followed in January 2017. However, investigators found no evidence that the rail project was executed.

Reacting to the ICPC’s claims, former members of the Kaduna State Executive Council (2015–2023) rejected allegations of financial mismanagement, describing the commission’s move to seize N1.3 billion as unjustified.

In a statement, the former officials explained that the light rail project was conceived in 2015 as a Public-Private Partnership (PPP), with Indian firm Skipper securing the contract. The state reportedly committed 15% of the estimated $600–700 million project cost, while seeking an 85% loan from India’s EXIM Bank.

They further disclosed that a feasibility study, conducted by French firm Systra and GTA Engineering, cost $2.8 million (N890 million) and was duly approved by the state government. According to them, the project stalled when the federal government declined to provide a sovereign guarantee, leading to a recall of funds. A forensic audit later confirmed the refunds, they said.

The former officials accused the ICPC of bypassing due process, acting under the influence of the current Kaduna State Government, and pursuing an unjustified forfeiture. They argued that all transactions were legal, transparent, and properly documented.

“The commission initially alleged that N13 billion was missing before forcing Sterling Bank to deposit N1.3 billion—including the feasibility study cost and accrued interest—into an escrow account with the Central Bank of Nigeria,” they stated.

On the allegation that payments were made into the account of a company not yet registered with the Corporate Affairs Commission (CAC), the officials contended that there were differing opinions on whether to use a limited liability company registered with the CAC or one established by the State House of Assembly.

They warned that the ICPC’s actions could deter foreign investment and undermine confidence in public-private partnerships in Nigeria.

The investigation is ongoing, with the ICPC expected to determine the extent of financial impropriety and whether further legal actions will be taken against those involved.

ICPC begins investigation on alleged N11.1bn misappropriation of Kaduna light rail project