Wike Declares FCT's 'Park-and-Pay' Scheme Illegal, Cites Fraud in Contract Agreements

 

The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has declared the On-Street Parking, or "Park-and-Pay" scheme, illegal, citing fraudulent practices in the contract between the managing contractors and the FCT administration.

Wike made this announcement on Wednesday, August 21, during a media briefing marking his first year in office. The scheme, originally launched in 2014 and reintroduced in 2023, involved a N908.3 billion agreement with concessionaires NAJEC Limited and Messrs Automaten Technik Bauman Nigeria Limited. The agreement projected an estimated revenue of N26.93 billion over a 10-year period for each contractor.

The reintroduction of the scheme in August 2023 was signed by then FCT Permanent Secretary, Olusade Adesola, who stated that the initiative had the support of the six area councils and aimed to promote orderliness in the city.

However, Wike revealed that he was not informed about the reimplementation of the scheme. He criticized the agreement, which allocated 80% of the revenue to the contractors, leaving only 20% for the FCT administration. He emphasized that the scheme unjustly required residents to pay for parking in front of their businesses or homes.

Wike recounted an incident where a colleague informed him of an attempt by Park-and-Pay officials to seize vehicles from his office. In response, Wike contacted the Transport Secretariat and learned of agreements between the Secretariat and so-called consultants. He questioned the fairness of an arrangement where consultants received 80% of the revenue while the government received only 20%.

Wike has since ordered a public statement declaring the Park-and-Pay scheme illegal and instructed that residents should not be charged for parking in front of their properties. He also highlighted that contracts like the Park-and-Pay scheme were facilitated through internal collusion, and he vowed to minimize corruption within the administration.

"No matter how you shuffle things, you still have civil servants working with you. It is not easy, but you try as much as possible to reduce it to the bare minimum. But we must continue to fight hard," Wike concluded.