The Minister of Blue and Marine Economy, Gboyega Oyetola has revealed that multi-billion-dollar cargo tracking agreement entered into by the federal government regarding the International Cargo Tracking Notes (ICTN) was faulty.
Oyetola disclosed this on Tuesday in Abuja while answering questions from a House of Representatives Committee on Shipping Exercises, Customs, Port and Harbour, and Maritime Safety, Education, and Administration probing delay in implementing the cargo tracking project, which experts say is costing the country $500 million monthly.
In March 2023, the administration of former President Muhammadu Buhari engaged a consortium led by Antaser Nigeria Limited to implement a cargo tracking system for all imports and exports, including crude oil exports.
However, in July, the Minister of State for Petroleum, Heineken Lokpobiri, awarded a contract to procure advanced solution technology for the Nigerian oil and gas sector.
However, Oyetola, who was represented by Babatunde Sule, a director in the Ministry of Blue and Marine Economy, justified the delay by stating that the process approved by the Federal Executive Council (FEC) was flawed.
Sule, who had initially acknowledged the project’s approval by the FEC, later claimed it was done in error.
His words: “I am aware of the contract. I am also aware that it was given to five companies. I learned that four of the companies signed an agreement, with the fifth not signing, and I think that was what stalled this whole process.
“The process was even faulty ab initio. The process that led to this was wrong,” he said, as the lawmakers jeered at his comments. The process could have been better than the way it was handled.”
A member of the committee, Hon. Kabir Maipalace, who alongside other lawmakers were unimpressed by Sule’s responses, with some questioning his capacity to represent the minister adequately.
He said: “I don’t think you are capable enough to represent the minister; 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 who are here do not have first-hand information.
On his part, Antaser’s chairman, Emeka Obianozie, explained how his company received approval to implement the project, including approval by the Federal Executive Council.
He added that his company’s contract with the government remains valid, adding that the company “maintains over 95 per cent global network outreach for trade monitoring and cargo inspections.”
Obianozie revealed that under the current administration, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Customs Service (NCS) are attempting to build and implement the same service in the oil and gas sector at a greater cost.
He stated: “We informed NSC of the attempt by the Upstream Petroleum Regulatory Commission and Nigerian Customs Service to implement part of ICTN’s scope at a huge cost to the nation.
“We noted that these efforts and the associated complications are arising due to the delay in implementing the ICTN scheme.
“The hush move, if allowed, will amount to duplication, mediocrity, unnecessary costs, and, more importantly, abuse of the project by inadvertently compromising the transparency which is the cardinal pillar of the service scheme.”
Adedayo Akinwale
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