The Minister of Federal Capital Territory (FCT), Barrister Nyesom Wike, has declared the ‘Park n Pay’ scheme in Abuja illegal, following revelations that the scheme was being used to syphon government’s funds under the guise of a legal operation.
Wike made the announcement during a live media parley on Wednesday, marking his one year in office.
The FCT minister expressed his dismay at the scheme’s revenue-sharing formula, where private consultants received 80% of the collected funds, while the FCT administration received a mere 20%.
He condemned the arrangement, while highlighting a significant flaw in the system that allowed private entities to divert funds meant for government use.
Wike further stated that the incident was brought to his attention when a senior advocate reported an attempt by individuals claiming to be from the Transport Secretariat to seize vehicles from his office.
Upon investigation, Wike noted that he discovered that the people were operating under the ‘Park n Pay’ scheme, which he was previously unaware of.
NewsNGR reports that the scheme involved an agreement between the Transport Secretariat and private consultants, who collect the majority of the funds.
According to him: “The call from a senior advocate, brought to light a scheme that has been syphoning government funds under the guise of a legal operation.
“The scheme, which appears to have been operating under the radar, highlights a critical flaw in the system that allows private consultants to pocket the lion’s share of revenues meant for the government.
“These are things we need to fight within the system. Sometimes, if you don’t bring it to our attention, we may not know. We can’t be everywhere,” Wike emphasised, while noting the challenges faced in overseeing the sprawling FCT administration.
He continued, “The incident unfolded when a senior advocate reached out to me with a troubling report. He said, ‘Sir, some people came to our office and are trying to seize our cars. They claim to be from the Transport Secretariat’.
“I asked him to give the person the phone, and I asked the person, ‘Who are you?’ He said he is from ‘Park and Pay from the Transport Secretariat.
“I wasn’t aware of this, so I called the person in charge of it. I asked, ‘Who collects the money?’ Unknown to us, there are agreements between the secretariat and some people who claim to be consultants. So, the consultant takes 80%, and the FCT administration takes 20%,” Wike explained, visibly disturbed by the discovery.
The minister emphasised that such activities are illegal and promised immediate action to dismantle the operation.
“I’m trying to say that it’s illegal, and nothing like that exists. And if my colleague hadn’t called me, I wouldn’t have known,” he stated.
In August 2023, the Federal Capital Territory Administration (FCTA) and a group of concessionaires of on-street parking, signed an agreement to restore the ‘park and pay’ scheme in Abuja.
The Permanent Secretary of FCTA, Olusade Adesola, who signed on behalf of the FCTA said that the move was to promote a culture of orderliness and organisation in vehicle parking.
According to him, the initiative will decongest the city and make motoring a more pleasant experience.
Mr Adesola explained that the scheme was suspended in 2014 by an Abuja High Court, on grounds that it was not backed by a law.
He also said that the earlier implementation was without the approval of the Federal Executive Council (FEC).