FCT ‘Park ‘n’ Pay’: House Committee Queries 60% Revenue Sharing with Concessionaires

Adedayo Akinwale in Abuja

The House of Representatives Committee on Federal Capital Territory Administration (FCTA) has queried the Federal Capital Development Authority (FCDA) for allocating 60 per cent of revenue to concessionaires while the government receives only 40 per cent in the “park and pay” policy.

To this end, the committee demanded clarification on what infrastructure the concessionaires were providing.

The policy was suspended in April 2014 after a high court judgement stopped the FCTA from collecting fees from residents for on-and-off the street parking within the metropolis. The court had ruled that the policy was not backed by law.

However, the FCTA reintroduced the ‘park and pay’ policy in the nation’s capital in August, 2023, after signing an agreement with two concessionaires. The policy was aimed at decongesting the city.

The Chairman of the committee, Hon. Muktar Betara, while speaking at an interactive session in Abuja, yesterday, demanded details on how the reintroduced ‘park and pay’ policy was established, who authorised it, and how remittances are made to the coffers of the FCDA.

The committee lamented that residents and motorists in the nation’s capital were being harassed by those employed to enforce the policy.

Responding, the Secretary, FCT Transportation secretariat, Chinedum Elechi, said the policy was regulated and supported by a legal framework and that only designated areas serve as parking zones.

“The ‘park and pay’ is by regulation. We have a legal framework. It is part of the ways of controlling traffic. So, under the part and pay, designated areas are meant to be parks. So, it is legal,” Elechi said.

“It is (revenue) paid through concessionaires. There is usually a ration between the concessionaires and the FCT. So, for areas where we have the concessionaires, there is a percentage that goes to the concessionaires. It is 60 percent and 40 percent goes to FCT.

“The infrastructure for the work is usually provided by the concessionaire. It (revenue) goes straight to the revenue account of the FCT, not transportation,” he added.

The committee chairman queried how the contract was established and the criteria for choosing the concessionaires.

“How was the contract established? In appointing your concessionaires, what procedure did you follow? How much has been remitted to the FCDA from January to date? Who gave you the approval,” Betara asked.

Responding, the Director of Legal Services, Transport Secretariat, Hussaina Olayemi, explained that the Infrastructure Concession Regulatory Commission (ICRC) and the Abuja Investment Company (AIC), the FCT organisation responsible for public-private partnerships, were involved.

“After their involvement, the concession was submitted to the Federal Executive Council (FEC) for approval. So, we have the FEC approval,” Olayemi stated.

The committee also frowned at FCDA for allocating 60 percent of revenue to concessionaires while the government receives only 40 percent.

In his response, Elechi said the concessionaires were responsible for marking roads.

However, the committee chair countered, asserting that no roads in Abuja have been marked by the concessionaire.