There is growing unrest in Nigeria’s maritime sector following plans by the Nigerian Ports Authority (NPA) to cancel long-standing cargo survey contracts awarded in 2019.
The contracts, awarded after following due process, have been credited with improving efficiency, ensuring compliance, and boosting revenue at Nigerian ports.
However, the NPA’s recent letter to the Bureau of Public Procurement (BPP) seeking approval for selective tendering has triggered alarm.
On November 14, 2024, the NPA requested the BPP’s ‘No Objection’ to adopt selective tendering for 99 projects described as “urgent.”
The BPP responded firmly, reminding the NPA that approval had already been granted in 2023 for 55 of these projects.
The bureau insisted it could not approve the same projects twice, warning of potential litigation risks for the government.
Sources within the maritime sector suggest that the proposed cancellations target contracts awarded to multiple companies providing vital cargo survey services across Nigeria’s ports.
“These contracts have been instrumental in ensuring the safety, compliance, and integrity of transported goods,” an insider told Daily Nigerian.
“Companies involved in these contracts have invested heavily in infrastructure and equipment to deliver on their obligations,” the source added.
Stakeholders Raise Concerns
The proposed cancellations have drawn sharp criticism from stakeholders, who argue that the move is not only unnecessary but also potentially damaging.
Marine industry expert Wale Gbolahan described the plan as both “illegal and ill-advised.”
“Contractors have fulfilled their obligations under the agreements. Terminating these contracts abruptly will lead to massive litigation, disrupt trade, and erode investor confidence,” he told reporters in Lagos.
Mr. Gbolahan urged the Minister of Marine and Blue Economy, Adegboyega Oyetola, to intervene immediately.
He warned that the cancellation could tarnish the reputation of President Bola Ahmed Tinubu’s administration, particularly in light of its focus on economic reform and maritime growth.
“This decision will cast a shadow over the government’s commitment to fostering a thriving maritime economy,” he added.
Legal and Financial Risks
Experts predict serious consequences if the cancellations proceed.
One industry insider noted that cargo surveys are vital for combating under-declaration by importers and shippers, a practice that previously led to significant revenue losses for the government.
“Since these contracts were implemented, the NPA has seen increased transparency and improved earnings,” the expert said.
“Tampering with this system will open the floodgates for malpractice and revenue leakage,” he warned.
The insider also highlighted the financial risks involved, pointing out that contractors could sue the NPA for breach of contract.
“Many of these firms have invested in personnel, technology, and infrastructure to fulfill their obligations. Terminating the contracts prematurely could result in costly lawsuits that would drain the NPA’s resources,” he said.
“Such legal battles would paralyze port operations and create ripple effects across the economy,” he added.
Calls for Investigation
The controversy has sparked calls for transparency and accountability within the NPA.
Several stakeholders are demanding an independent investigation into the motives behind the proposed cancellations.
“The NPA must prioritize transparency and accountability. Any decision that threatens the stability of the ports must be carefully scrutinized,” Mr. Gbolahan concluded.
Stakeholders are now looking to the federal government to step in and resolve the crisis.
