There was intense drama in the House of Representatives on Monday when Gboyega Oyetola, the Minister of Blue and Marine Economy, alleged that the federal government’s multi-billion-dollar cargo tracking agreement was a mistake.
The controversial agreement, known as the International Cargo Tracking Notes (ICTN), was signed to ensure effective tracking of Nigeria’s imports and exports, including crude oil shipments.
Mr. Oyetola, who did not attend the hearing, was represented by Babatunde Sule, a director in the Ministry of Blue and Marine Economy.
The House investigative panel questioned him regarding the delays in implementing the ICTN project, which experts claim is costing Nigeria a staggering $500 million each month.
The hearing was organized by the House of Representatives Committee on Shipping Exercises, Customs, Ports and Harbour, and Maritime Safety.
The focus of the committee’s probe is to understand why the cargo tracking project, a potentially lucrative venture for Nigeria, remains stalled.
During his appearance, Mr. Sule shocked the lawmakers by alleging that the process which led to the project’s approval by the Federal Executive Council (FEC) was “flawed.”
Mr. Sule stated that the cargo tracking contract was handled improperly and that the procedures used in its signing could have been better.
“The process was even faulty from the beginning. The way it was handled was wrong,” Mr. Sule asserted.
His comment stirred reactions from the lawmakers, some of whom expressed dissatisfaction with the lack of clarity.
An attempt by some lawmakers to calm him down only led him to further admit that the signing process could have been more organized.
This multi-billion-dollar project, intended to track Nigeria’s imports and exports, was approved in March 2023 under former President Muhammadu Buhari’s administration.
A consortium led by Antaser Nigeria Limited had been awarded the contract to implement the system, including coverage of crude oil exports.
However, with the new administration of President Bola Tinubu, sources claim that certain government officials are seeking to replace the Antaser-led consortium.
According to reports, officials from Tinubu’s administration prefer to establish a new public-private partnership (PPP) with other investors.
The new proposal, reportedly, is being pushed forward through the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Jobson Ewaleifoh.
In July, Minister of State for Petroleum Heineken Lokpobiri announced a separate deal to enhance tracking in the Nigerian oil and gas sector.
Mr. Lokpobiri said the arrangement would help the government track every crude oil cargo loaded in Nigeria and monitor it all the way to its final destination.
However, confusion remains over which agreement takes precedence, with the Antaser-led consortium holding the FEC’s approval for the ICTN project.
At the hearing, Mr. Sule revealed that while the FEC approved the project, he believed it was “an error.”
“I am aware of the contract and that five companies were involved. Four signed the agreement, but the fifth did not, which I believe contributed to the delay,” he explained.
This admission did not sit well with some members of the committee, who felt that the Minister’s absence and the representative’s responses signaled a lack of seriousness.
Honorable Kabir Maipalace voiced his frustration, questioning Mr. Sule’s ability to speak on behalf of the ministry.
“You don’t even have any information about the issue. The ministry is not serious. The minister did not show up, the permanent secretary did not show up, and you don’t have first-hand information,” he fumed.
Mr. Ewaleifoh, the DG of ICRC, also attended the hearing and added that the original process of securing the ICTN deal had been flawed under former Minister of Transport, Rotimi Amaechi.
This statement was countered by Frank Tietie, Director of the Citizens Advocacy for Social Justice in Nigeria (CASER), who reminded the panel that the former consortium led by Antaser had approval from the FEC.
Tietie highlighted how previous attempts by the ICRC to award the contract to different companies, like Medtech Scientific Limited and Rozi International Ltd, had led to public outcry.
After strong objections from NGOs and stakeholders, the government had halted that process and returned to Antaser for the ICTN project.
Emeka Obianozie, chairman of Antaser Nigeria Ltd, also addressed the committee, explaining that his company had followed all necessary steps and gained full approval.
He warned that recent attempts by other agencies, including the Nigerian Customs Service (NCS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to set up separate tracking services would be costly and redundant.
“We informed the NSC of this duplication by NUPRC and Customs, which will lead to unnecessary costs and could compromise the transparency of the ICTN scheme,” Mr. Obianozie stated.
He affirmed that Antaser Nigeria Limited maintains a global reach, covering over 95% of global trade monitoring and cargo inspections.
The hearing became even more heated when lawmakers refused an intervention from Finance Minister Wale Edun, who appeared in Mr. Oyetola’s place at the start of the meeting.
Although Mr. Edun attempted to address the committee, lawmakers insisted they would only allow Mr. Oyetola or his authorized representative to testify.
The probe was scheduled to begin at 10:00 a.m. but was delayed as the committee waited for Mr. Oyetola.
After waiting until 11:00 a.m., lawmakers took a recess, and shortly afterward, Mr. Edun arrived at the hearing.
The refusal of Mr. Edun’s intervention led to a tense atmosphere until the minister’s representative, Mr. Sule, was eventually allowed to address the panel.
At the close of the hearing, committee chairman Dasuki indicated that more hearings would be held with all concerned parties to clarify the core issues and address the delays in implementing the ICTN project.
Lawmakers are expected to resume discussions on the matter in future sessions to ensure transparency and accountability.
