EFCC Arraigns Three Nigerian Railway Corporation Directors Over N2.04 Billion Fraud

The Economic and Financial Crimes Commission (EFCC) has arraigned three former directors of the Nigerian Railway Corporation (NRC) before a Federal High Court in Abuja over allegations of fraud totalling N2.04 billion.

The defendants, who served in senior management positions at the NRC, are facing multiple charges bordering on conspiracy, fraud, and misappropriation of public funds during their tenure at the corporation.

According to the charge sheet filed by the anti-graft agency, the directors allegedly colluded to divert funds earmarked for railway infrastructure development and operations into private accounts between 2019 and 2023. The EFCC claims that the fraud was perpetrated through inflated contracts, ghost workers, and the manipulation of procurement processes.

The Nigerian Railway Corporation, which is responsible for rail transport services across the country, has been undergoing revitalisation efforts with significant government investment aimed at modernising the nation's rail network. The alleged fraud represents a setback to these modernisation efforts.

During the arraignment, all three defendants pleaded not guilty to the charges. Their legal counsels argued that the transactions in question were legitimate business activities conducted in the normal course of the corporation's operations.

The presiding judge has granted the defendants bail in the sum of N100 million each with two sureties in like sum. The case has been adjourned for trial, with the prosecution expected to present its first batch of witnesses at the next hearing.

The EFCC says its investigation uncovered a pattern of financial misconduct involving the award of contracts to companies linked to the accused directors. Forensic analysis of bank records allegedly revealed suspicious transactions that formed the basis of the charges.

Transport sector analysts say corruption has long plagued the Nigerian Railway Corporation, undermining efforts to restore the rail system to its former glory. The sector has received billions of naira in federal allocations for rehabilitation and expansion projects.

The commission has vowed to continue its investigation into financial activities at the NRC, with sources indicating that additional arrests may follow as prosecutors build their case against the accused.

If convicted, the former directors could face lengthy prison sentences under the EFCC Act and the Advance Fee Fraud and Other Fraud Related Offences Act.