Contract awarded by FG was wrong- Minister

By Gift ChapiOdekina, Abuja

The Executive Secretary Shippers Council of Nigeria, Mr Pius Akutah on Monday revealed that Nigeria has lost about 2.5 billion dollars in five years, $500 million yearly over non-implementation of the international cargo tracking notes(ICTN).

This is also as the Minister of Marine and Blue Economy, Gboyega Oyetola who was represented by the Director, of Maritime services, Mr Babatunde Sule said that though the federal executive council of the past administration approved the contract at the tail end of the administration the process of award of the contract was wrong.

The revelation was made during an investigative hearing on the circumstances surrounding the Non-implementation of the international cargo tracking notes, identify any obstacles or challenges faced by the Nigeria shippers council in carrying outfits roles effectively held by the House of Representative committees on shipping exercises, customs, port and harbour and maritime safety, education and administrations.

Speaking during the meeting in Abuja, Akutah said “Nigeria has lost almost 2.5 billion dollars. Within the last five years Nigeria has not implemented this.Because of some investigations that arose out of which EFCC conducted some of its investigations, a period of five years passed.

“Within the last five years. They implemented it for two years and somehow stopped.In the last five years, they have not done it.We are losing that amount in dollars.

“So in Nigeria today, there have been some attempts that were made at implementing this. Altogether a period of two years, was the period in which this was implemented.And some revenue was generated at that time. But because of some issues surrounding the implementation, and the issues that were raised that led to investigation by even the law enforcement agencies, this only took place within a period of two years. And within the last five years or thereabouts that this has not been implemented, Nigeria has lost not less than one to five billion dollars. If we implement it, that is what we should be able to put in the economy, within a period of two years. And the implementation as at that time was very brief, but it generated quite a good number of income for the country. So this is just part of what Nigeria is losing.

According to the Minister, the process that led to the approval of the Contract by the previous administration was wrong.

“Sometime last year, the Federal Executive Council approved a contract. At the tail end of the last administration, the government approved five companies. I know there was a fake approval, regarding this contract. I’m also aware that it was given to five companies.I also learned that four of the companies signed an agreement, with the fifth not signing. I think that was what stalled this whole process. The process was wrong.

“At the assumption of the office of the minister, he made frantic efforts to resuscitate this contract.We had several stakeholders’ meetings. We even invited the lead partner for a meeting. We had several discussions on this issue.All has not yet been decided. Time won’t let me say what the Honorable Minister has continued to do in his efforts to see that this deal is actualized.

“At this level, there are certain things which he will be doing that may not be to my knowledge.I therefore plead the indulgence of this committee to await what the Minister has done so far on this issue of the ICTN. It is a very critical issue. But that is what I can say about the ICTN project.

According to a statement by Chairman of Shipping lines Association of Nigeria (SAN), Boma Alabi who was not present at the meeting, the proposal is another toll gate for government and does not enhance the ease of doing business and trading in Nigeria.

“The bill adding that the shipping industry in Nigeria is already over burdened with red tape and certainly does not require another layer of bureaucracy which is what the proposed Cargo Tracking Bill will result in.

“All exporters and importers are able to track their goods on the website of the shipping lines generally speaking. In addition, the shipping lines have to upload their manifest to the Customs NICIS portal which is connected to the CBN single window. They also have to upload this information to NPA, NIMASA, NDLEA, and DSS.

“Adding, the ICTN without streamlining the existing process will only result in further delays and congestion.

Speaking earlier during his welcome remarks, the chairman of the Commitee on shipping services and related matters, Rep Abdussamad Dasuki stated that the ICTN is far more than an administrative requirement but an essential tool designed to bring transparency, security, and operational efficiency to the movement of cargo across borders.

He said “despite its approval and the commitment of various stakeholders, progress towards implementing the ICTN has been hampered by significant challenges. Among these challenges, we believe, are the bureaucratic delays competing interests among agencies, limited coordination between key stakeholders, and the duplication of contracts awarded for its implementation.

“Today’s gathering is an opportunity to tackle these issues head-on. Our goal is to identify the root causes of these delays, address conflicted interests, improve revenue generation by plugging the loopholes that allow illicit cargo such as arms and drugs, to sleep through our ports and ultimately unlock the potential of the ICTN to bring Nigeria’s maritime industry in line with global best practices.

“The insights and contribution from all participants today will be instrumental in shaping the 10th House of Representatives legislative measures required to make the ICTN operational.I urge each and every one of you to engage actively and share your own experience and expertise as the successful implementation of this system is our collective responsibility. Together, we have the opportunity to strengthen our economic security and accelerate our nation’s growth.