…Queries 60 percent revenue share to concessionaires
By Ebriku John Friday
A house of representatives committee has faulted the park and pay arrangement of the Federal Capital Territory Administration (FCTA).
In an interactive session with Chinedum Elechi, mandate secretary in charge of the transportation secretariat, the house committee on federal capital territory said residents and motorists in the nation’s capital are being harassed by those employed to enforce the policy.
FCTA reintroduced the park and pay policy into the nation’s capital in August, 2023, after signing an agreement with two concessionaires. The policy was aimed at decongesting the city and make motoring a more pleasant experience.
The policy was suspended in April 2014 after a high court judgement stopped the FCTA from collecting fees from residents for on-and-off the street parking within the metropolis. The court ruled that the policy was not backed by law.
At the interactive session on Tuesday, Muktar Betara, the committee chairman, demanded details on how the reintroduced park and pay arrangement was established, who authorised it, and how remittances are made to the coffers of the FCDA.
Responding, Elechi said the policy is regulated and supported by a legal framework and that only designated areas serve as parking zones.
“The park and pay is by regulation. We have legal framework. It is part of the ways of controlling traffic. So, under the part and pay, designated areas are meant to be parks. So, it is legal,” Elechi said.
“It is (revenue) paid through concessionaires. There is usually a ration between the concessionaires and the FCT. So, for areas where we have the concessionaires, there is a percentage that goes to the concessionaires. It is 60 percent and 40 percent goes to FCT. The infrastructures for the work is usually provided by the concessionaire. It (revenue) goes straight to the revenue account of the FCT not transportation.”
The committee chairman queried the mandate secretary about the contract process. “How was the contract established? In appointing your concessionaires, what procedure did you follow? How much has been remitted to the FCDA from January to date Who gave you the approval” Betara asked.
Responding, Hussaina Olayemi, the director of legal services of the transport secretariat, explained that the Infrastructure Concession Regulatory Commission (ICRC) and the Abuja Investment Company (AIC), the FCT organisation responsible for public-private partnerships, were involved.
“After their involvement, the concession was submitted to the federal executive council (FEC) for approval. So, we have the FEC approval,” Olayemi stated.
The committee criticized the FCDA for allocating 60 percent of revenue to concessionaires while the government receives only 40 percent, demanding clarification on what infrastructure the concessionaires are providing.
Replying, the mandate secretary stated that the concessionaire is responsible for marking roads. However, the committee chair countered, asserting that no roads in Abuja have been marked by the concessionaire.
“They way they (concessionaires) operate in Abuja, they harass people on the streets. I would have advised you people to have given the VIO this concessionaire. Let them take up this so that the whole revenue would go to FCT. Why are you personalizing this for an individual,” Betara said.
The committee ruled that, on the next appearance, the mandate secretary should bring a copy of the agreement with the concessionaires and details of the remittances received from January to date.
ABANDONED MOTOR PARKS
The committee also questioned the FCDA officials over abandoned motor parks in the nation’s capital.
Paschal Agbodike, a member of the committee, specifically expressed concerns over the condition of the Nyanya park.
“When motorists don’t have parks, they operate anyhow. We noticed that the Nyanya park has been abandoned. When are you going to address this, and what caused its abandonment? he asked.
In response, Elechi said the park has not been abandoned, adding that the government is taking one project at time, with initial focus on rails.
“Nyanya park is not abandoned. We cannot do everything at the same time. When we came on board, the rail was a priority, but now our attention has shifted to the development of parks. We are currently focusing fully on the bus terminal,” he said.
The committee also sought details on the financial allocations and expenditures for various projects. However, the transport officials struggled to provide concrete figures.
Kama Nkemkanma pressed for specifics on the budget for road mapping from the airport to the city center, while Betara questioned the transport director about the funds provided in 2022 and 2023.
The mandate secretary and director of finance could not provide specific figures on the various projects.
“It is quite unfortunate that everybody keeps saying they can’t remember the figure. You are the CEO. It is not good for us, and it is not good for the committee and your agency. We are talking about Nyanya park here, and a lot of money has been expended, but there is nothing to show for it. Even the committee knows how much was budgeted for this particular project. This does not speak well. If you don’t know the figures, how then can you manage the whole of Abuja? It’s impossible,” Nkemkanma said
The committee demanded a comprehensive report detailing the total budget and expenditures for the years 2022, 2023, and 2024 to facilitate proper scrutiny and oversight.
