There is disquiet at the Nigerian ports following plans by the Nigerian Ports Authority, NPA, to cancel cargo survey contracts awarded in 2019.
On November 14, 2024, the NPA wrote to the Bureau of Public Procurement, BPP, requesting for ‘No Objection’ fiat to adopt selective tendering in the procurement of about 99 projects to be implemented “urgently”.
But the BPP wrote back to the NPA, notifying the authority that it had earlier in 2023 granted due process ‘No Objection’ for the implementation of about 55 projects out of the 99 projects the authority requested.
The BPP, therefore, expunged the affected projects as the bureau, “cannot grant approval for the same projects to obviate government from any litigation”.
DAILY NIGERIAN gathered that the proposed cancellation targets legally awarded contracts to multiple firms providing cargo survey services across various ports.
It was also gathered that the contracts were awarded following due process and have been executed by contractors in line with agreed terms.
“These services, essential for ensuring the safety, compliance, and integrity of goods during transport, have been credited with improving efficiency and revenue generation for the NPA,” an insider told our correspondent.
“Many of these companies have made significant capital investments in infrastructure and equipment.”
Another source stated that, “there should be no obvious reasons for the proposed cancellation as there are no evidence of inefficiency or breach of contract.”
Wale Gbolahan, a prominent marine stakeholder in Lagos, who has been vocal in his opposition to the plan, said the proposed cancellation is not only illegal but also ill-advised.
Speaking to journalists recently, he said: “The proposed cancellation is not only illegal but also ill-advised. Contractors have fulfilled their obligations under the agreements, and any abrupt termination will lead to massive litigation. This will stall operations at the ports, disrupt trade, and erode investor confidence.”
Mr Gbolahan further appealed to the Minister of Marine and Blue Economy, Adegboyega Oyetola, to intervene and prevent the NPA from taking actions that could result in unnecessary legal and financial losses.
He warned that such a move would cast a shadow over the administration of President Bola Ahmed Tinubu, and undermine the government’s commitment to economic reform and maritime growth.
This is not the first time concerns have been raised about actions by the NPA’s new management.
Recently, the Federal Ministry of Justice and the Office of the Head of the Federation flagged what they described as a “surreptitious plan” to cancel legally awarded contracts.
Industry experts predict dire consequences if the cancellations proceed.
“Cargo surveys play a pivotal role in curbing under-declaration by importers and shippers, a practice that previously cost the government significant revenue.
“Under the current contracts, the NPA has witnessed increased transparency and improved earnings. Tampering with this system would open the floodgates for malpractice and revenue leakage,” an expert who chose to be anonymous, told Daily Nigerian over the phone.
He added: “Terminating the contracts prematurely could expose the NPA to hefty lawsuits from contractors who have invested heavily in personnel, technology, and infrastructure.
“Legal battles of this magnitude would not only strain the agency’s resources but also paralyze port operations, with ripple effects across the economy.”
Stakeholders have urged the government to prioritize transparency and accountability in the administration of the NPA.
They also called for an independent and thorough investigation into the motives behind the proposed cancellations.
“The maritime sector is critical to Nigeria’s economic stability. The government cannot afford to let personal interests derail the progress made in recent years.
“This situation demands immediate attention and decisive action,” the expert concluded.
