- European Investigators Describe $356m Failed Railway Contract As Nigeria’s Biggest Money Laundering Case. But we didn’t even hear of it because we are the King of corruption in the world.
Femi Fabunmi and Kehinde Adeleye
Eko Hot Blog gathered that he investigation has revealed shocking details about how a dormant European company, Strasky Husty and Partners, in collaboration with a Nigerian firm, Lingo Nigeria Limited, secured a lucrative contract under former President Goodluck Jonathan’s administration—only for the project to be abandoned after full payment.
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The Lost Railway: A Project Buried in Promises
In November 2011, the Federal Executive Council (FEC), led by then-President Goodluck Jonathan, awarded a contract for the rehabilitation of the Nigerian Railway Corporation’s Eastern Line, covering the Kuru-Maiduguri route.
The contract, worth $356 million (approximately ₦23.7 billion), was given to Lingo Nigeria Limited, owned by Abuja hotelier Linus Ukachukwu, in partnership with Strasky Husty and Partners, a company registered in the United Kingdom.
Despite the contract specifying a 10-month completion period, work on the railway line barely progressed. When the then Minister of Transport, Idris Umar, inspected the project, he expressed disappointment over the lack of progress.
Lingo Nigeria’s project manager blamed security challenges and delays in importing materials, promising improvements. However, investigations now suggest that the contract funds had already been paid in full, yet little to no work was done.
European Investigators probe into the project
The European probe into Strasky Husty was triggered by suspicious financial transactions, including large payments made to the company despite it being a dormant entity with no experience in railway construction.
Registered in the UK in 2002, Strasky Husty listed its business activities as road and bridge construction but was also classified under the category of “dormant company,” raising concerns about its legitimacy.
Investigators have since uncovered a web of financial transactions and corporate links tied to Nigerian businessman Linus Ukachukwu.
According to an official documents, sighted by Newsdiaryonline States that a local company, Lingo Nigeria owned by an Nnewi-born Abuja hotelier, Mr. Linus Ukachukwu, in partnership with an offshore company Strasky Husty and Partners were awarded the contract for which they were purportedly paid $356m.
Strasky Husty and Partners was found to be a private company incorporated on 12 September 2002, with registered office address at 9 Station Parade, Uxbridge Road, Ealing Common, London W5 3LD.The company number is 04533738.
The online medium reports that the company’s nature of business include: 42110-construction of roads and motorways; 42130- construction of bridges and tunnels and most shocking of all, 99999-dormant company.
It was inferred from this detail that a dormant European company got a huge contract in Nigeria, although the company has an authorized share capital allotted and fully paid with aggregate nominal value of one hundred Pounds.
The attention of European investigators were aroused following alleged false tax filings, money laundering issues and the prospect that the deal was part of money suspected to be proceeds of crime.
Further findings show that Ukachukwu’s Lingo Nigeria received the contract in partnership with Strasky Husty and was fully paid, but the railway project remained abandoned.
The Failed Project and Links to Other Suspicious Companies
Further investigations in Nigeria have established that five companies were to this corruption case.
These companies—AM PM Global Network Limited, Pansy Oil and Gas Ltd, Finchley Top Homes, Aribawa Aruera Foundation, and Pagmat Oil and Gas Ltd—had their bank accounts frozen by a Federal High Court in Lagos in 2016 due to fraud allegations.
Authorities discovered that Ukachukwu had personally signed and received the Right of Occupancy (R of O) for Finchley Top Homes from the Abuja Geographic Information Systems (AGIS).
He also operated multiple accounts, including those at Diamond Bank (now merged with Access Bank) and Ecobank, where one of his linked accounts had a closing balance of nearly ₦480 million.
The “Land Swap” Scandal
Beyond the failed railway contract, Ukachukwu reportedly benefited from other government deals during the Jonathan administration.
On December 6, 2012, his company, AM-PM Global Network Limited, signed a controversial agreement under the Federal Capital Territory’s “Land Swap” program.
This deal granted his firm nearly 2.9 million square meters of land in Burum West “B” District, Abuja—a prime location—raising further questions about preferential treatment and corruption.
Lavish Properties Under Investigation
Still linked to the failed railway project to which money was received in full but project stalled
Investigators have also indicated principal suspect linked to several high-value properties suspected to have been purchased using proceeds from illegal deals.
These properties include:
- Onyx Hotel, Garki, Abuja
- Lingo Estate, Abuja
- Nzube Estate, Abuja
- Eagle Aluminium Company, Awka and Abuja
These assets are currently under scrutiny as authorities try to determine whether they were acquired through fraudulent government contracts.
The exposure of the failed $356 million railway contract and its links to powerful individuals highlights Nigeria’s ongoing struggle with corruption.
However, recently President Bola Tunubu appointed an experienced hand, Kayode Opeifa in the capacity of a Managing Director to handle and oversee the affairs of the Nigeria Railway Corporation and during his speech delivered upon assumption of office, Opeifa rolled out action plans to rejuvenate, refurbish and put NRC on a global pedestal.
DR. KAYODE OPEIFA, THE NEW MANAGING DIRECTOR OF NRC
Dr. Kayode Opeifa’s illustrious career as a Nigerian transportation expert, public administrator, and academician spans several decades, during which he has made significant contributions to the development of Nigeria’s transportation sector.
His expertise and leadership have earned him national recognition, culminating in his recent appointment as the Managing Director of the Nigeria Railway Corporation (NRC) by President Bola Ahmed Tinubu in 2024.
He’s server as the Special Adviser and Commissioner to Governor Babatunde Raji Fashola in Transportation. He was also the Transport Secretary for the Federal Capital Territory FCT
In 2019, Dr. Kayode Opeifa served as the Vice Chairman and Team Leader of the Presidential Task Team (PTT) on Apapa Port Congestion.
CHALLENGES AND WAY FORWARD
The Nigerian railway system has experienced a remarkable resurgence after a period of decline and decay. In the 1970s, ’80s, and early ’90s, the railway was celebrated for its comfort, reliability, efficiency, affordability, and sense of reassurance, fostering pride among its employees and the general populace. Notable Nigerians built illustrious careers within the sector during its heyday.
However, the railway system later faced significant challenges due to inadequate maintenance and investment, leading to outdated equipment, dilapidated offices, and deteriorating staff quarters.
This decline in infrastructure and working conditions ultimately weakened workforce morale and public trust in the railway system.
1. Security
The new helmsman will have to deal with security along the rail line to repose confidence in the system and close cooperation between railway authorities and security agencies is essential to ensure the safety of both trains and passengers.
In March 2022, the Abuja-Kaduna train attack sent shockwaves across Nigeria, exposing the nation’s vulnerabilities in maintaining security along critical transportation routes.
As the train traversed between Katari and Rijana in Kaduna State, armed gunmen ambushed the unsuspecting passengers with explosives and gunfire, resulting in an unspecified number of casualties and several abductions.
With nearly 1,000 passengers on board, the assault highlighted the deteriorating security situation in Nigeria, particularly in the northern region
2. Outdated Rail system
it is imperative to focus on upgrading dilapidated infrastructure and fostering collaboration between relevant agencies. Replacing outdated and decaying infrastructure is crucial to minimizing risks and providing passengers with a safe, reliable travel experience.
Opeifa’s primary focus should be on rehabilitating old lines and expanding facilities to improve connectivity, which will have far-reaching implications for both commerce and overall economic integration.
3. Finacial Sustainability
While the primary objective of the Nigerian Railway Corporation (NRC) is to enhance transportation infrastructure and connectivity, it is equally important for the corporation to prioritize financial sustainability and eliminate graft.
To achieve this, Opeifa’s leadership must implement strict measures to curb wastage, plug loopholes, and address allegations of ticket racketeering.
4. Expanding Revenue Base
The NRC faces the challenge of expanding its revenue base without placing an undue burden on passengers through fare increases.
With the new management team under Opeifa’s leadership, stakeholders and citizens expect the corporation to devise innovative strategies for boosting revenue generation.
One concerning aspect of the NRC’s current performance is its relatively low contribution to the country’s Gross Domestic Product (GDP), estimated at only two to three percent.
This highlights the urgent need for the corporation to explore alternative revenue streams and improve operational efficiency to become a more substantial contributor to the national economy.
5. Neglect of Private Partnership
Years of neglect and poor management have eroded confidence in Nigeria’s railway system, leading to reduced private sector interest and investment.
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To reposition the sector, the new NRC management must prioritize fostering trust and engaging in strategic partnerships.
Private sector participation has proven successful in various industries, including aviation.
Key lessons from such experiences should be applied to the railway sector, with the government playing a crucial role in creating an enabling environment for investors.
We at Eko Hot Blog wish the new Managing Director, Dr. Kayode Opeifa, a successful tenure and hope that issues related to corrupt practices will be reduced to the barest minimum.
