A significant controversy is emerging regarding the federal government’s inconsistent policies and the duplication of contracts previously awarded by the Muhammadu Buhari administration for the International Cargo Tracking Note Scheme (ICTN).
On July 13, 2024, President Bola Tinubu, presiding over the Federal Executive Council, approved the procurement of cutting-edge technology solutions in the Nigerian oil and gas industry. This decision involved re-awarding an existing contract to enhance operations in the sector.
The Minister of State for Petroleum, Heineken Lokpobiri, announced the deal at a press briefing, saying it will enable the country to track every crude oil loaded in Nigeria up to its destination.
The project will install the necessary onshore and offshore flow meters in the country’s exporting points. The minister said this would “significantly curb oil theft and diversion, ensuring that our revenues are protected.”
The contract was awarded to P-Lyne Energy Limited and is expected to be completed in 180 days.
However, official documents available to THISDAY revealed that in March 2023, under former President Buhari, the federal government awarded similar contract for the cargo tracking system to a consortium of 5 companies comprising Messrs Antaser Afrique Bvba Belgium/Antaser Nigeria Limited, Messrs Velocity Logistics and Marine Services Limited, Messrs Sahams Crystals Investment Limited, Messrs Winslow Logistics Limited and Messrs Equal Logistics Limited for 15 years on “No cure No Pay’ basis with a revenue sharing ratio of 60:40% accruable to the Federal Government of Nigeria and the consortium respectively.
This contract was to be fully funded by the lead partners (Antaser Nigeria Ltd/Antaser-Afrique Bvba) at zero cost to the federal government, and a commitment by Antaser Nigeria Limited to “procure and install” the necessary on and offshore flow metres in all of the country’s exporting points.”
The whole essence of engaging an independent firm to monitor all imports and exports, including crude oil exports, is to introduce transparency, accountability, and check and balance and to obtain accurate trade data in all cargo movement in Nigeria, as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Customs Service lacked the needed capacity to monitor themselves.
However, in breach of the procurement laws and another effort to sabotage the existing contract, the Nigerian Customs Service (NCS) introduced its form of ICTN, called the “Advance Ruling system.” The Ministry of Marine and Blue Economy is solely responsible for monitoring the movement/ transportation of cargo via water within the country.
Also, the Bureau of Public Procurement (BPP), in a letter dated June 7, 2024, directed the Ministry of Petroleum and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to ensure that no other government agency is undertaking a similar assignment, particularly the Advanced Cargo Tracking note under the defunct Federal Ministry of Transportation.
The letter tagged, “Due Process Review Report for Procurement of Pre Field-Development Studies for Advanced Declaration Solution Technology, sighted by THISDAY, said “Due Process Certificate of ‘No Objection’ cannot be granted to the Ministry of Petroleum/ Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the award of contract for procurement of Pre Field-Development Studies of Advanced Declaration Solution Technology (ADST) in the Nigerian Oil and Gas Upstream Sector in favour of Messrs P-Lyne Energy Limited in the tender sum of US $2,687,625.35 inclusive of 7.5% VAT and 180 days completion period. The position is supported by Section 16 (18) of the PPA, 2007.”
The letter, signed by BPP Director-General Mamman Ahmadu, further stated: “However, based on the submission by the NUPRC and to ensure value for money, a Due Process Certificate of ‘No Objection’ can be granted to the Ministry of Petroleum/Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the award of a Contract for Procurement of Pre Field-Development Studies of Advanced Declaration Solution Technology (ADST) in the Nigeria Oil and Gas Upstream Sector in favour of Messrs. P-Lyne Energy Limited in the amount of US$2,278,050.35, inclusive of 7.5% VAT, and with a completion period of 180 days.”
However, a similar contract had been awarded by the Buhari-led government, which the present administration deliberately ignored.
It remains unclear why the Tinubu-led administration awarded a duplicate of this contract to P-Lyne Energy Limited while the same contract awarded to Antaser Nigeria Limited has not been annulled.
To those familiar with the issue such contradictions by the federal government are serious obstacles to Nigeria’s economic growth and is often cited by domestic and foreign investors as a significant barrier to doing business.
Recently, a non-government organisation, Citizens Advocacy for Social and Economic Rights (CASER), condemned the new oil and gas metering contracts awarded by the presidency, saying the procurement blatantly undermines Nigeria’s national interest and reeks of high-level corruption.
In its statement, CASER said the two recent contracts awarded by President Tinubu are apparent duplications of services meant to be at zero cost to the Federal Government of Nigeria under implementing the ICTN.
“It is important to question why the Nigerian Shippers Council and the Honorable Minister of Marine and Blue Economy have not activated the existing contract with the Antasser-led consortium; instead, they have allowed for duplication of the same contract to another agency of the same government,” the group said.
Most West African countries have already implemented International Cargo Tracking Notes (ICTN). At the same time, Nigeria is now the continent’s gateway for dumping all manners of illicit trades, such as arms, drugs, and contrabands, for onward land transportation to other countries.
Just recently, the federal government declared a state of emergency at the Onne Port in Rivers State following repeated incidents of importation of dangerous cargo, including arms and ammunition, through the port.
According to the Comptroller General of Customs, Bashir Adeniyi, the recurring incidents threaten national security and citizens’ health. The Onne Port is increasingly used as a destination for dangerous and illicit cargo. He described this as a disturbing trend that also threatened citizens’ health.
“Recent intelligence and seizures have revealed a disturbing trend; Onne Port is increasingly being used as a destination for dangerous and illicit cargo. The scale and nature of these illegal importations pose a significant threat to our national security and the health of our citizens’, Adeniyi lamented.
Many keen observers are worried that re-awarding the ICTN contract will undoubtedly damage the sanity of the nation’s procurement process and mock presidential approvals.
They believe it will also lead to further investor apathy, not to mention another protracted legal battle which may further delay the implementation of the ICTN scheme, leading to substantial revenue losses and heightened insecurity in Nigeria.
