EFCC Uncovers ₦1 Billion Fraud in Lagos Red Line Railway Project, Chinese Contractor, Oil Magnate Implicated
The Economic and Financial Crimes Commission (EFCC) has uncovered a ₦1 billion fraud scandal involving the Lagos Red Line railway project.
At the center of the scandal are a prominent Chinese construction firm and a controversial Nigerian oil magnate, both alleged to have diverted funds meant for critical infrastructure work and the payment of local subcontractors.
According to findings by the anti-graft agency, over ₦600 million was initially released by the Federal Government to a Chinese contractor tasked with executing key aspects of the Lagos Red Line project, including fencing and safety installations.
However, investigations reveal that the total amount misappropriated may have reached as high as ₦1 billion.
A significant portion of the funds, EFCC sources say, was allegedly transferred to a local partner firm, Deux Projects Limited, under the guise of facilitating payments to subcontractors. Instead of disbursing the funds, the company, owned by an engineer with ties to senior political figures, reportedly withheld the money—leaving nearly 30 subcontracting firms unpaid for work done since 2017.
Many of the affected contractors, who carried out the actual construction and labor on various sections of the Red Line project, have since suffered financial ruin. Several report being saddled with unpaid loans and high interest rates from commercial banks after receiving no compensation for completed work.
Their appeals to both the Lagos State Government and the Ministry of Transportation reportedly went unanswered for years.
The scandal took a dramatic turn when the contractors publicly demanded presidential intervention and called on the EFCC to step in. Their petition alleged that Deux Projects Limited had deliberately sabotaged the payment chain, acting with impunity under political protection.
The investigation also unearthed the involvement of a controversial oil magnate, widely believed to be the shadow financier behind Deux Projects Limited. The individual in question is said to have longstanding connections within both the public and private sectors, and allegedly used influence within the Ministry of Transportation to shield the scheme from scrutiny.
The EFCC, while yet to make formal arrests, has confirmed that a full-scale investigation is underway. Commission officials have begun tracing financial transactions linked to the project and interrogating those directly involved in the disbursement and handling of the funds.
This revelation comes at a time when the Nigerian government is under increasing pressure to ensure transparency in the execution of major infrastructure projects. Recent audits have exposed systemic irregularities in other railway projects, including contract inflation and payment for unexecuted works.
Observers say the Lagos Red Line case could become a watershed moment in Nigeria’s fight against corruption in public infrastructure. Stakeholders are now calling for a comprehensive review of contract award procedures and tighter oversight of partnerships involving foreign firms and politically exposed persons.
As investigations continue, the EFCC is expected to summon several key figures, including senior officials from the implicated companies and their government liaisons. Affected subcontractors, meanwhile, are hopeful that justice will be served and that overdue payments will finally be made.
This scandal, while deeply troubling, highlights the growing role of anti-corruption bodies in exposing financial misconduct in Nigeria’s rapidly expanding infrastructure sector.
