Reps panel queries implementation of FCT “park and pay” scheme — launches probe

The House of Representatives Committee on the Federal Capital Territory (FCT) has criticised the “park and pay” scheme implemented by the Federal Capital Territory Administration (FCTA).

The committee raised concerns about the scheme on Thursday during an interactive session with the Mandate Secretary in charge of the Tansportation Secretariat, Chinedum Elechi.

During the session, the Committee’s Chairperson, Muktar Betara, questioned the operation of the “park and pay” policy in the capital territory, insisting that the FCTA provide details of the scheme.

He requested information on how the reintroduced “park and pay” arrangement was established, who authorised it, and how the revenues are remitted to the coffers of the Federal Capital Development Authority (FCDA).

In response, Mr Elechi stated that the policy is regulated and supported by a legal framework, with only designated areas serving as parking zones.

“The ‘park and pay’ scheme is regulated. We have a legal framework. It is one of the ways of controlling traffic. Under the ‘park and pay’ system, designated areas are designated as parking zones, so it is legal,” Mr Elechi explained.

He added that the revenue is collected through concessionaires contracted by the FCTA.

“The revenue is collected through concessionaires. There is a revenue-sharing ratio between the concessionaires and the FCT. For areas managed by the concessionaires, 60 per cent of the revenue goes to the concessionaires, while 40 per cent goes to the FCT. The infrastructure for the work is provided by the concessionaire, and the revenue goes directly to the FCT’s revenue account, not the transportation department,” he said.

Dissatisfied with the explanation, Mr Betara sought further clarification on the revenue-sharing formula and the contract process that led to the selection of the concessionaires.

“How was the contract established? What procedure did you follow in appointing your concessionaires? How much has been remitted to the FCDA from January to date? Who gave you the approval?” Mr Betara asked.

Hussaina Olayemi, the director of legal services for 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’s approval,” Mr Olayemi stated.

In his ruling, Mr Betara criticised the entire “park and pay” policy, arguing that the FCTA should have given the concession to the Vehicle Inspection Office (VIO) instead of private entities.

“The way the concessionaires operate in Abuja—they harass people on the streets. I would have advised you to give the VIO this concession. Let them take over this responsibility so that all the revenue would go to the FCT. Why are you personalising this for an individual?” Mr Betara said.

The chairman subsequently directed the FCTA to provide copies of the agreement with the concessionaires and details of the remittances received from January to date.

Concerns about motor parks

During the interaction, the lawmakers also expressed concerns about the operation of parks in the FCT, noting that some motor parks have been abandoned.

A committee member, Paschal Agbodike, questioned the administrators about the state of major parks in the territory, mentioning that the Nyanya motor park and others have been neglected.

“When motorists don’t have parks, they operate chaotically. We noticed that the Nyanya park has been abandoned. When will you address this issue, and what caused its abandonment?” Mr Agbodike asked.

In response, Mr Elechi denied that the park had been abandoned, stating that the government is focusing on one project at a time, with an initial emphasis on rail infrastructure.

He explained that the government’s current priority is developing bus terminals across the FCT.

“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 focus has shifted to the development of parks. We are currently focusing fully on the bus terminal,” he said.

However, Mr Elechi could not provide details of the funds spent on some of the projects, including street marking and road construction. His inability to provide answers frustrated many of the lawmakers present.

“It is quite unfortunate that everyone keeps saying they can’t remember the figures. You are the CEO. This is not good for us, the committee, or your agency.

“We are talking about Nyanya park here, and a lot of money has been spent, but there is nothing to show for it. This does not reflect well. If you don’t know the figures, how can you manage the whole of Abuja? It’s impossible,” Kama Nkemkanma, a member of the committee, 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.