FG Moves to Avert Repeat of P& ID Saga, Unveils Manual on Contract Mgt, Compliance

Alex Enumah in Abuja 

The federal government has unveiled a contract management and compliance manual, aimed at avoiding the repeat of the Process and Industrial Development (P&ID) contract that threatened the seizure of Nigeria’s assets abroad over alleged breach of contract.

Specifically, the manual, “Federal Complex Contracts Process and Administration” (FCAS), according to the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, Mrs. Beatrice Jedy-Agba, was designed to enhance operational efficiency and reduce financial risk.

Speaking yesterday, during the 2023 Manual and Workshop Engagement with legal advisors and key stakeholders in Abuja, Jedy-Agba blamed the negative contractual claims and judgment debts against the federal government on improperly drafted or negotiated contracts between government ministries, agencies and contractors.

Besides, the Permanent Secretary frowned at the ways and manners laws were being undermined in the signing of Memorandum of Understanding (MoU) and agreements, warning that “You cannot just do what you like. We expect that you have capacity, which should reflect in the quality of agreement you are bringing.”

She therefore charged Legal Advisors to MDAs to always do their best to avert failed contracts and also

mitigating the effect. 

Jedy-Agba however noted that with effective collaboration with critical stakeholders, participants would be able to effectively implement the projects they deliver on behalf of the government.

Also speaking, a Deputy Director in the ministry, Mr. Augustine UchechukwuKalu, noted that the new move was to guide the ministry and various departments on how to navigate the FCAS platform and get results.

Kalu disclosed that one of the fundamental objectives of the FCAS was to ensure that projects not needed are not embarked upon, adding that about 40 MDAs have been unbundled. 

“We will look at the feasibility studies, Public Private Partnership arrangement, funding arrangement, due diligence both country and out country so that projects are not abandoned,” he added.

The Chief Consultant to the Ministry on FCAS, Dr. Mark Osa Igiehon, expressed government’s readiness to take action through the justice ministry so as to avert what happened in the case of P&ID contract.

According to him, the government by the new plan would be able to enter into projects and contracts in a sophisticated way using specialists not only to minimisethe possibility of project failure but also to be able to process and record contracts in the most proper way.

“Government is now ready to take action on such high level, high valued and high-risk projects so that in the future, we will have fewer contract failures and would not have to pay huge sums of money on failed contracts,” Igiehon said.