The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has declared the controversial On-Street Parking scheme, also known as the ‘Park-and-Pay’ scheme, illegal.
Wike cited fraudulent practices in the contract agreement between the managing contractors and the FCT administration.
Wike made the declaration on Wednesday during a media briefing to mark his first year in office as the FCT Minister.
The ‘Park-and-Pay’ scheme, which was initially introduced in 2014, was reintroduced in 2023 after the FCT administration signed a massive N908.3 billion agreement with concessionaires NAJEC Limited and Messrs Automaten Technik Bauman Nigeria Limited. The agreement projected an estimated N26.93 billion in revenue over a 10-year period for each concessionaire.
The then Permanent Secretary of the FCT, Olusade Adesola, signed the agreement on behalf of the FCT in August 2023. Adesola stated at the time that the reintroduction of the scheme had the consent of the six area councils and was aimed at promoting orderliness and organization within the city.
However, Minister Wike expressed his surprise at the reintroduction of the scheme, noting that the agreement allowed for an 80 percent revenue share to the contractors, with only 20 percent remitted to the FCT administration. He emphasized that residents should not be compelled to pay for parking in front of their businesses or residences.
Wike recounted an incident where a senior advocate informed him of attempts by officials from the Transport Secretariat to impound vehicles under the guise of the ‘Park-and-Pay’ scheme. The Minister immediately intervened, questioning the legality of such actions and reaffirming that the scheme was illegal.
Wike has since ordered that a statement be issued to inform residents that the ‘Park-and-Pay’ scheme is not sanctioned by the FCT administration, urging them not to comply with any demands for parking fees.
