Post by Henry Emeka (@Emekus)

Respectfully no country is perfect Nigerian government can do better if they are serious no lies no slogans. Nigeria’s history of corruption in public projects is well‑documented by organizations like Transparency International, so it makes sense to ask what a foreign company like Mota‑Engil gains and why they would invest their own money.

What Mota‑Engil gains from Nigeria
Foreign contractors NEVER invest out of charity. They invest because they get guaranteed returns. Here’s exactly what they gain:

They get paid back with profit (EPC + Financing Model)
Mota‑Engil agreed to partially finance the Kano–Maradi railway.
In return, Nigeria must:

Pay them back over time

Pay interest

Pay contractor profit margins

Pay for maintenance contracts

This is similar to a bank loan — but tied to construction.

So Mota‑Engil earns money through:

Construction profit

Interest on financing

Long‑term maintenance contracts

Supply of materials and equipment

This is a business deal, not a favor.

They get long-term presence in West Africa
Mota‑Engil is expanding aggressively in Africa.
Nigeria is the biggest market in West Africa.

By building this railway, they gain:

Political access

Future contracts

Regional influence

A base for expansion

This is strategic positioning.

They bring their own workers, equipment, and subcontractors
Even though Nigerians do most of the labor, the high‑value jobs go to Mota‑Engil:

Engineers

Project managers

Surveyors

Rail specialists

They also import:

Machinery

Steel

Rail tracks

Technology

All of this is paid for by Nigeria.

So the money flows back to Portugal, not into the Nigerian economy.

They get tax incentives and government guarantees
Foreign contractors often receive:

Tax holidays

Duty waivers

Land rights

Government guarantees against loss

This reduces their risk and increases profit.

Now, about Nigerian government past/present corruption .If you give the money to Nigerian government they will buy luxury cars, houses and planes instead of rail building.”

This is a common public concern, and it’s not baseless.
Nigeria has a long history of:

Inflated contracts

Abandoned projects

Diversion of funds

Political patronage

Because of this, foreign contractors often insist on controlling the money themselves, not giving it to Nigerian ministries.

This is why EPC + financing deals are attractive:

The contractor brings the money

The contractor controls the spending

The government only pays back later

It reduces the chance of funds being stolen — but it also means Nigeria pays more overall.

https://constructionreviewonline.com/tinubu-sets-2026-deadline-for-completion-of-kano-maradi-railway-project/?utm_source=copilot.com

https://dailytrust.com/kano-maradi-rail-project-now-at-60-completion-tinubu/?utm_source=copilot.com

0 likes · 0 comments · 0 shares