Maritime Stakeholders Sound the Alarm on NPA's Plan to End 10-Year Contracts

Published on October 05, 2025 at 02:26 PM
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Table of Contents

  1. Stakeholders' Warning
  2. NPA's Justification
  3. Lack of Engagement
  4. Previous Attempts
  5. BPP's Rejection
  6. Procurement Uncertainties
  7. Call for Investigation

Stakeholders in the maritime sector have warned the Nigerian Ports Authority (NPA) against plans to cancel Cargo Survey (CS) contracts that were legally awarded in 2019 for a duration of 10 years, set to expire in 2029.

It is important to note that a letter dated September 2025 from NPA’s Managing Director, Abubakar Dantsoho, claimed that “operational needs and efficiency” warranted the cancellation, despite the fact that the companies had fulfilled their obligations.

The industry stakeholders, represented by the Maritime Integrity Movement, stated that the NPA did not engage with these organizations in discussions nor did they accuse them of underperformance prior to the attempt to terminate the agreements.

Lucky Abegunde, the convener of the group, remarked in a statement, “This is not the first instance where the NPA has sought to annul the agreements. Previously, it had contacted the Bureau of Public Procurement (BPP) seeking a ‘No Objection’ to re-procure the services through selective tendering.

“The BPP declined the request, cautioning against the misuse of restricted procurement and instructing the NPA to adopt open competitive bidding in accordance with the Public Procurement Act of 2007.

“Nevertheless, following sustained pressure, the BPP approved restricted procurement for certain CS contracts to companies connected to associates of the NPA leadership.”

The movement further accused the NPA of intentionally withholding invoices and creating procurement ambiguities to undermine existing contracts. They cautioned that terminating contracts prematurely without a breach would expose the federal government to legal action and escalate costs.

The group urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to investigate what they termed “a fraudulent attempt to cancel and reallocate the cargo survey contracts.”

Frequently Asked Questions

What are the Cargo Survey contracts?

The Cargo Survey contracts are agreements awarded to firms for conducting surveys on cargo operations at Nigerian ports, initially granted for a duration of 10 years in 2019.

Why did the NPA want to cancel the contracts?

The NPA claimed that the cancellation was necessary due to “operational needs and efficiency,” although the firms involved had not defaulted on their obligations.

What actions have stakeholders taken in response?

Stakeholders, represented by the Maritime Integrity Movement, have called for an investigation by the EFCC and ICPC into what they perceive as a fraudulent attempt to cancel and reallocate the contracts.

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