Drama in House of Reps as Oyetola Claims FG Signed Cargo Tracking Agreement in Error

A mild drama unfolded in the House of Representatives on Monday as Gboyega Oyetola, the Minister of Blue and Marine Economy, claimed that a multi-billion-dollar cargo tracking agreement involving the federal government and the International Cargo Tracking Notes (ICTN) was flawed.

Oyetola made this assertion while being questioned by a House investigative panel examining the delays in implementing the cargo tracking project, which experts estimate is costing the nation approximately $500 million monthly.

The hearing was organized by the House Committee on Shipping Exercises, Customs, Port and Harbour, and Maritime Safety, Education, and Administration, and it is focused on the non-implementation of the contract.

Represented by Babatunde Sule, a director in the Ministry of Blue and Marine Economy, Oyetola justified the delays by stating that the process approved by the Federal Executive Council (FEC) was erroneous.

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In March 2023, former President Muhammadu Buhari’s administration engaged a consortium led by Antaser Nigeria Limited to implement a cargo tracking system for all imports and exports, including crude oil.

However, with the change in government, Sahara Reporters learned that officials from the Bola Tinubu administration are seeking to replace the Antaser-led consortium with their preferred investors, under the guise of a public-private partnership (PPP) involving Jobson Ewaleifoh, the new Director General of the Infrastructure Concession Regulatory Commission (ICRC).

In July, the federal government announced a contract for advanced solution technology in the Nigerian oil and gas sector. Minister of State for Petroleum, Heineken Lokpobiri, announced the deal during a press briefing, stating it would enable tracking of every crude oil cargo loaded in Nigeria to its destination.

During the hearing, Sule, who initially acknowledged the project’s approval by the FEC, later claimed it had been granted in error. “The process was flawed from the beginning,” he remarked, eliciting jeers from lawmakers. “It could have been handled better,” he added after receiving feedback from his colleagues.

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Sule also mentioned, “I am aware of the contract awarded to five companies, but only four signed the agreement. I believe this is what has stalled the process.”

Many lawmakers expressed dissatisfaction with Sule’s responses, questioning his ability to adequately represent the minister. “I doubt your capacity to represent the minister; you lack vital information on this issue. The ministry is not taking this seriously. The minister and the permanent secretary did not attend, and you, who are here, do not have firsthand knowledge,” remarked Kabir Maipalace, a committee member.

Ewaleifoh insisted during the hearing that he was only familiar with the flawed procurement process initiated by former Minister of Transport, Rotimi Amaechi. In response, Frank Tietie, director of Citizens Advocacy for Social Justice in Nigeria (CASER), reminded the DG that the companies ICRC aimed to procure, namely Medtech Scientific Limited, Rozi International Ltd, and Frabemar UK, were in the medical equipment and construction sectors. This procurement process had been canceled midway due to significant outcry from NGOs and industry stakeholders before the contract was awarded to the Antaser-led consortium.

NUPRC, Customs Move to Hijack Project at Great Cost — Consortium

In his presentation, Antaser’s chairman, Emeka Obianozie, informed the committee that his company received approval to implement the project, including FEC endorsement. He stated that under the current administration, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Customs Service (NCS) are attempting to build and implement similar services in the oil and gas sector at a significantly higher cost.

“We have informed the NCS of the attempts by the Upstream Petroleum Regulatory Commission and Nigerian Customs Service to implement part of ICTN’s scope, which would be costly to the nation. These efforts are arising due to delays in the ICTN scheme’s implementation.

“If allowed, this move would result in duplication, inefficiency, unnecessary expenses, and, crucially, compromise the transparency that is fundamental to the service scheme,” Obianozie stated. He reaffirmed that his company’s contract with the government remains valid, noting that they maintain over 95% global outreach for trade monitoring and cargo inspections.

Lawmakers Decline Edun’s Intervention to Save Oyetola

The absence of Oyetola at the beginning of the hearing nearly stalled the proceedings. The probe was scheduled for 10 a.m., but by 11 a.m., the minister had not yet arrived. Lawmakers decided to take a one-hour recess to allow him to attend. During this time, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, arrived at the venue. However, lawmakers insisted on the presence of Oyetola only, which frustrated several members.

Eventually, after some lawmakers intervened, the minister’s representative was permitted to address the committee. In his closing remarks, Mr. Dasuki stated that the committee would hold hearings with all relevant parties to address the core issues. The committee later adjourned after receiving contributions from various participants at the hearing.