Court orders interim forfeiture of N1.37bn ‘diverted’ from Kaduna rail project

A federal high court in Kaduna has ordered an interim forfeiture of N1.37 billion allegedly diverted from the Kaduna state government into a private account.

The money, originally allocated for Kaduna state’s abandoned light rail project, was allegedly diverted during the administration of Nasir el-Rufai, who served as governor from 2015 to 2023.

In an ex parte motion filed on February 14, the Independent Corrupt Practices and Other Related Offences (ICPC) claimed the el-Rufai administration never executed the project and depriving the people of the benefits of rail transport system.

The commission accused some officials of diverting the money through Indo Kaduna MRTS JV Nig. Ltd, a joint venture entity set up in 2016 by the state government and Indian business people.

Hauwa Buhari, the presiding judge, granted the application moved by E.O. Akponimisingha, the ICPC lawyer, on February 28.

The judge ordered the interim forfeiture of the money and also directed the ICPC to publish a notice in any two national newspapers, requesting any person with interest in the property to present their claim and show cause in court why the asset should not be permanently forfeited to the federal government.

The matter was adjourned to April 8, 2025, for interested persons who may want to claim the money to make their case before the court.

BACKGROUND

The Kaduna state government, under el-Rufai, entered into a joint venture agreement with Indo Kaduna MRTS JV Nig. Ltd. in October 2016 for the construction of a light rail transport system.

However, the ICPC revealed that payments for the project began before the company was officially registered.

Despite its lack of formal incorporation by the Corporate Affairs Commission (CAC) until May 10, 2017, el-Rufai’s administration reportedly approved payments to the entity as early as December 2016.

Between December 2016 and January 2017, the then-governor was said to have authorised a total payment of N11.1 billion to the company’s account domiciled with Sterling Bank.

Out of this amount, N1.373 billion was allegedly diverted into a private account, which was later traced by the ICPC.