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From Adanna Nnamani, Abuja
Economic and political analysts have raised alarms about the federal government’s recent management of the International Cargo Tracking System (ICTS) contract, cautioning that it may threaten foreign investment in Nigeria.
In July, the Federal Executive Council approved a contract for advanced technology in Nigeria’s oil and gas sector that would allow for real-time tracking of crude oil shipments. The contract was awarded to P-Lyne Energy Limited, with a 180-day timeline.
However, it has been revealed that this contract duplicates an existing one awarded in March 2023 to Antaser Nigeria Limited, which was established as a 15-year Cargo Tracking System under a public-private partnership (PPP) with no cost to the government.
Speaking at a Policy Dialogue Session on the Implementation of the ICTS in Abuja on Monday, Emeka Orji, a financial expert and fellow at the Abuja School of Social and Political Thought (TAS), said it was crucial to promote market confidence in Nigeria, particularly in light of recent economic challenges.
Orji warned that any perceived contractual mismanagement could deter international investors, noting that, “For a country seeking credit from the international finance community, contractual mishaps can severely impact our reputation.”
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Dr. Sam Amadi, Director of TAS and former chairman of the Nigerian Electricity Regulatory Commission (NERC), questioned the rationale behind the potential cancellation of the contract with Antaser.
He criticised the government’s process, stating that proper evaluations and assessments should have been conducted before any changes were made. “There is no justification for unilaterally revoking a contract that has gone through due process,” he stated.
Amadi further noted that the implications of contract management extend beyond financial considerations; they affect Nigeria’s overall political risk profile. “Nigeria ranks poorly in terms of the rule of law in Africa. Any irregularities in contract awards could further damage our investment climate,” he warned.
He also called for transparency and accountability from the government, urging it to clarify the reasons behind the contract switch.
The DG argued that ensuring due diligence in public procurement is essential for restoring investor confidence and promoting sustainable economic development.
Amadi emphasised the need for an independent National Procurement Council to oversee contract awards and maintain integrity in public procurement processes. He said that TAS plans to issue a policy brief addressing these concerns and recommending steps to safeguard against potential risks to Nigeria’s economic recovery and investment attractiveness.
