Nigeria has lost a staggering $2.5 billion over the past five years due to delays in implementing the International Cargo Tracking Note (ICTN) contract, according to Pius Akutah, Executive Secretary of the Nigerian Shippers’ Council (NSC).
Pius Akutah, the Executive Secretary of the Shippers Council, disclosed this during an investigative hearing on the circumstances surrounding the non-implementation of the international cargo tracking notes, identifying any obstacles or challenges faced by the Nigeria Shippers Council in carrying outfits roles effectively organized at the instance of joint House Committees on Shipping Services and related matters, Customs, Port and Harbour and Maritime Safety, Education and Administrations.
Mr. Akutah said: “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 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 an investigation by even the law enforcement agencies, this only took place within 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 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.”
Meanwhile, in her presentation, chairman, Shipping Lines Association of Nigeria, Boma Alabi expressed stuff opposition against the proposed Cargo Tracking Bill describing it as another toll gate for the government.
Mrs. Alabi who argued that the proposed bill will not enhance the ease of doing business and trading in Nigeria, maintained that the shipping industry in Nigeria is already overburdened 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 can 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,” she noted.
Federal Government in July 2024 announced the award of the contract to procure advanced solution technology in the Nigerian oil and gas sector.
The Minister of State for Petroleum, Heineken Lokpobiri, announced the deal at a press briefing, saying it will enable the country to track every cargo of crude oil loaded in Nigeria up to its destination.
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.
The Nigerian Shippers’ Council (NSC) signed the agreement with Antaser Limited and four other companies on a “No Cure, No Pay Basis” and with a revenue sharing ratio of 60:40 accruable to the Federal Government of Nigeria and the Consortium, respectively.
The agreement with Antaser Nigeria Limited was to correlate the real flow with declared quantities and correct the problem by introducing electromagnetic flow metres with remote data acquisition.
Speaking during the hearing, Antaser’s chairman, Emeka Obionorie, informed the committee of how his company got the approval to implement the project, including the approval by the Federal Executive Council (FEC).
He stated that under the present administration, there are moves by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Customs Service (NCS) to implement the same technology in the oil and gas sector at a greater cost.
“We informed NSC of the attempt by Upstream Petroleum Regulatory Commission and Nigerian Customs Service to implement part of ICTN scope at huge cost to the nation. We noted that these efforts and the associated complications are arising due to the delay in the implementation of the ICIN scheme.
“The hush move, if allowed, will amount to duplications, mediocrity, unnecessary costs, and more importantly, abuse at the project by inadvertently compromising the transparency which is the cardinal pillar of the service scheme.“
Mr. Obionozie said the company’s contract with the government remains valid. Adding that the company “maintains over 95 percent global network outreach for trade monitoring and cargo inspections.”
In his presentation, Minister of Marine and Blue Economy, Chief Gboyega Oyetola who was represented by Director, Maritime Services, Mr Sule argued that the initial contract was done in error.
While noting that frantic efforts were made to resuscitate the contract, he explained that several stakeholders’ meetings were held.
“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,” Mr. Sule told the lawmakers.
To this end, the lawmakers underscored the need for the Minister to appear in person to brief the Committee.
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