Scholars Seek Inquiry into Nigeria Government’s $2.3bn Contract Discontinuation

Folalumi Alaran in Abuja 

Scholars at the Abuja School of Social and Political Thought (TAS), have raised concerns regarding the integrity of the Nigerian government about the terminated $2.3 billion contract granted to Antaser Nigeria Limited for the Implementation of the International Cargo Tracking System (ICTS).

They noted a lack of consistency in the government’s contract-awarding processes.

They advocate for the establishment of a robust and transparent Database that clearly outlines the contracts awarded to recipients and the parties involved to prevent fraudulent activities.

Director of the Abuja School of Social and Political Thought, Dr. Sam Amadi,  expressed these views during a policy dialogue session on the Implementation of the International Cargo Tracking System (ICTS) held in Abuja.

Amadi, noted that given the transition from the Buhari’s administration to Tinubu’s administration within the All Progressives Congress (APC), there was an expectation of continuity in the implementation of awarded contracts.

According to the director of the Abuja School, in March 2023, the federal government of Nigeria granted a 15-year contract to Antaser Nigeria Limited for the development of the ICTS, with the aim of bolstering national security, enhancing port efficiency, and reducing oil theft.

He emphasised that this initiative was projected to yield approximately $2.3 billion in revenue over the next decade, playing a pivotal role in Nigeria’s economic revival.

Amadi, pointed out that during the tenure of Buhari, a contract was assigned to Antaser Nigeria Limited for cargo, along with another contract granted to a PPP business. 

He noted that the latter involved investments and the installation of necessary tools on offshore flow meters at all of Nigeria’s export points.

The contract was anticipated to generate $2.3 billion over a decade, with a revenue-sharing ratio of 60-40. The company also committed to investing up to $2 million in establishing local infrastructure as part of its contribution.

“Collaboratively, they developed a solution to execute the contract, which was to span 14 years and encompass network maintenance, ICT facilities upgrades, and the procurement of licensed equipment. Legal reserves amounting to around 1 billion were set aside.”

Amadi said the contract underwent a thorough approval process by the Directorate of Public Prosecutions (DPP) before being formally awarded and projected.

Moreover, the National Information Technology Development Agency (NITDA) issued certificates of competency to the company.

“However, a significant issue arose when the new government re-awarded the same contract without formally terminating it and going through due process. This raised concerns as previous breaches of contracts had already caused substantial issues for Nigeria.”

Discussing the government’s integrity, the director emphasised that adherence to the rule of law should commence with the government.

They questioned the rationale behind the government awarding contracts only to have a subsequent administration reassign them to different entities.

A member of the institute, Dr. Ayokunle Fagbemi, stressed the school’s commitment to enhancing public procurement and fiscal responsibility in contractual matters.

He highlighted the need to prevent future contradictory and overlapping agreements through meticulous reflection and contribution.

“Moving forward, it is imperative for the nation to put an end to the recurring pattern of successive administrations and to establish a functional Council Secretariat to ensure seamless guidance and support for decision-making processes.

“In addition, addressing concerns related to procurement procedures and certifications is crucial to upholding the integrity of contractual agreements.”

Another member, Kwaghtagher Iwueseter-Natu, emphasised that contract breaches have a detrimental impact on investor confidence. 

“Transparency and communication from the government regarding contract revocations and reassignments are essential to rebuild trust and demonstrate accountability,” she said.