- Nigeria paid $356M for an abandoned railway project.
- A dormant UK company won the contract despite no experience.
- European investigators are probing it as a massive money-laundering case.
Lagos, Nigeria – European investigators have described a failed $356 million railway contract as Nigeria’s largest money laundering case, raising serious concerns over corruption and financial mismanagement in the country.
The contract, awarded in November 2011 under former President Goodluck Jonathan’s administration, was meant for the rehabilitation of Lot 3 of the Nigerian Railway Corporation’s Eastern Line, covering the Kuru to Maiduguri section.
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However, official reports indicate that the project was abandoned shortly after an initial mobilization to the site, despite full payment being made to the contractors.
According to Newsdiaryonline, the contract was awarded to Lingo Nigeria Limited, owned by Abuja-based hotelier Linus Ukachukwu, in partnership with a European firm, Strasky Husty and Partners.
The total contract sum of $356 million (approximately N23.7 billion) was paid, but investigations show that no substantial work was done.
Then-Minister of Transport Idris Umar, during an inspection tour of the project, expressed disappointment at the lack of progress.
A project manager for Lingo, Architect Jerry Nweke, attributed the delays to security challenges and late arrivals of imported components, but assured that work would be 60% complete by May.
However, European investigators found that Strasky Husty and Partners, the offshore company involved, was a dormant entity with no prior experience in railway construction.
Registered in the United Kingdom in 2002, Strasky Husty was listed as a construction company for roads, bridges, and tunnels but had no track record of railway projects.
This raised suspicions of money laundering, tax fraud, and possible financial crimes. Further investigations revealed that several Nigerian companies linked to Ukachukwu and former First Lady Patience Jonathan had also benefited from lucrative deals under the Jonathan administration.
In particular, five companies, AM PM Global Network Limited, Pansy Oil and Gas Ltd, Finchley Top Homes, Aribawa Aruera Foundation, and Pagmat Oil and Gas Ltd, were identified in the probe.
These companies had their accounts frozen by a Federal High Court in Lagos in December 2016 over financial irregularities.
Ukachukwu was reportedly a signatory to two AM PM Global Network Limited accounts at Diamond Bank and was linked to various other businesses suspected to be funded through illicit proceeds.
Investigators traced financial flows to luxury properties, including Onyx Hotel in Garki, Abuja, Lingo Estate, and Nzube Estate, as well as the multi-billion naira Eagle Aluminium Company in Awka. These assets are now under scrutiny for potential links to corrupt dealings and illicit fund transfers.
Lingo Nigeria Ltd was originally registered in June 1992 as a general merchant company with an initial capital of just N100,000, casting further doubt on its capacity to execute a massive railway infrastructure project.
While European investigators continue their probe into Strasky Husty and its financial activities, Nigerian authorities, including the Economic and Financial Crimes Commission (EFCC) and the Department of State Services (DSS), have been criticized for failing to take decisive action. No arrests have been made in connection with the case, leading to concerns that key figures involved may evade justice.
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The case has triggered outrage among European financial watchdogs, who view it as a blatant example of money laundering and the misuse of public funds.
Analysts warn that unless Nigeria takes concrete steps to address corruption, the country risks further reputational damage on the international stage.
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