Reps Probe $475m Galaxy Backbone, China Fibre Infrastructure Contract

*Kick Against Additional $328m Credit Facility

The House of Representatives on Thursday concluded plans to investigate the execution of the $475 million contract signed between Galaxy Backbone and the Chinese Government for fibre infrastructure across the country.

Worried by the public outcry on the contract, the lawmakers mandated Federal Ministry of Finance, Budget and National Planning and management of Galaxy Backbone to immediately halt all certificates of completion and payments, respectively, in lieu of the project, pending the completion of the investigation by the Committee.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Mzondu Bem who expressed concern over the ongoing plan to access an additional $328 million (N126.7 billion) credit facility by Galaxy Backbone.

In his lead debate Hon. Mzondu who solicited for the House intervention with a view to ensure value for public funds injected into the contract, accused management of Galaxy Backbone and to a large extent, Federal Ministry of Communications of frustrating efforts of the relevant Standing Committee to oversight progress of the project.

He said: “The House notes that Nigeria’s Galaxy Backbone Limited, an agency under the Ministry of Communications and Digital Economy, signed a Memorandum of Understanding (MOU) with China’s Huawei Technology Limited in 2018 to provide Fiber Infrastructure under the National Information Communications Technology Infrastructure Backbone, (NICTIB) 1 and 2 Projects.

“The House also notes that following the Memorandum of Understanding, Huawei Technology Limited is expected to design, manufacture and deploy the kit that controls data movement across all Ministries, Departments and Agencies in the country.

“The House is aware that as part of the agreement, the relevant Committee of the House and the National Assembly at large approved about $475 million credit facility for the various phases of the Project(s) to be made available by China’s EXIM Bank.

“The House is also aware that Phase 1 of the project which spans 13 States across the South East, South-South, North-Central and South-West Zones of the country has been completed and commissioned.

“The House is concerned that all through the execution and completion of Phase 1 of the Project funded by part of the credit facility, Galaxy Backbone and to a large extent, the Ministry of Communications have frustrated efforts to oversight progress of the project.

“The House is also concerned that Galaxy Backbone Limited had made claims that the completion of Phase 1 of the Project is expected to reap revenue to the tune of billions of naira for the Government.

“The House is worried that whereas there has been no oversight to ascertain the level of the job done and verify claims of revenue generated by the Agency, there is a current bid to access an additional $328 million (N126.7 billion) credit facility to develop the NICTIB Phase II which covers 19 Northern States.

“The House is cognizant of the need to ensure judicious use of the nation’s commonwealth while ensuring the government’s ICT policy is implemented according to every aspect of statutory provisions guiding the execution of the project,” Hon. Mzondu noted.

To this end, the House mandated its Committee on ICT to investigate the status of implementation of Phase 1 of the project including a forensic audit on relevant transactions for the purpose of executing the National Information Communications Technology Infrastructure Backbone (NICTIB) projects 1 and 2.