By Fatima Saka
A Consortium of Scholars, The Abuja School of Social and Political Thought (TAS), has raised concerns regarding the integrity of the Nigerian government in relation to the terminated $2.3 billion contract granted to Antaser Nigeria Limited for the Implementation of the International Cargo Tracking System (ICTS), noting a lack of consistency in the government’s contract awarding processes.
The consortium advocates 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.
Dr. Sam Amadi, Director of the Abuja School of Social and Political Thought, expressed these views during a Policy Dialogue Session on the Implementation of the International Cargo Tracking System (ICTS) held on Monday in Abuja.
Dr. Amadi highlighted that given the transition from the Buhari Administration to the Tinubu Administration within the All Progressives Congress (APC), there was an expectation of continuity in the implementation of awarded contracts.
According to the director of Abuja School that 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.
The director of the consortium emphasized 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.
Dr. Amadi pointed out that during the tenure of former President Buhari, a contract was assigned to Antaser Nigeria Limited for Cargo, along with another contract granted to a PPP business.
He expressed 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.”
Dr Amadi stressed that 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 consortium director emphasized 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.
Dr. Ayokunle Fagbemi, a consortium member, 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.
He expressed that the consortium’s studies have revealed that breaches of legal and policy frameworks by Nigerian State agents, as well as the suppression of essential facts and data, have led to the prevailing issues over time.
“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.”
Kwaghtagher Iwueseter-Natu, another consortium member, emphasized 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..
Mr. Emeka Orjih, a Fellow of the Abuja School, underscored the importance of upholding contractual terms and regulations, particularly with international entities, to maintain economic stability and confidence.
John Oke, a Management Consultant and consortium member, highlighted the interconnected nature of the global economy and the necessity of creating an enabling environment for investments to safeguard against potential losses and maintain competitiveness on the global stage.
