Group asks Tinubu to withdraw duplicated contract after PREMIUM TIMES report

Reactions have continued to trail PREMIUM TIMES publication on how President Bola Tinubu awarded a cargo contract that is already existing.

On 13 July, the Federal Executive Council, chaired by Mr Tinubu, approved the “advanced cargo tracking system” contract to P-Lyne Energy Limited. If completed, the project will enable the country to track every cargo of crude oil loaded in Nigeria up to its destination.

Reacting to the PREMIUM TIMES investigation on Monday, the Citizens Advocacy for Social and Economic Rights (CASER) condemned the new oil and gas metering contracts awarded by Mr Tinubu, saying the procurement blatantly undermines Nigeria’s national interest and reeks of high-level corruption.

The group said they were disappointed about the recent revelation on the contracts. It noted the processes “defy all public procurement standards, raising more questions than answers at a critical time when our nation is battling with serious economic and security issues.”

The new contract for the engineering audit of upstream measurement equipment and facilities in the Nigerian Oil and Gas Upstream was awarded to PE Energy Limited, for the sum of $21 million while another contract for Advanced Cargo Tracking was given to P-Lyne Energy Limited for an amount yet to be disclosed.

A PREMIUM TIMES investigation shows that a similar cargo contract was awarded in March 2023 by the administration of former President Muhammadu Buhari. The previous government engaged a consortium comprising Antaser Nigeria Limited and five other companies to implement the Cargo Tracking System for 15 years.

The existing contract is a PPP arrangement with no cost to the federal government. It was expected that Antaser Nigeria Limited would implement the International Cargo Tracking Scheme (ICTN), including crude oil exports in Nigeria for a period of fifteen years on “No cure, No Pay Basis, with a revenue sharing ratio of 60:40 accruable to the Federal Government of Nigeria.”

In their statement on Monday, CASER said the two recent contracts awarded by Mr Tinubu are a clear duplication of services that are meant to be at a total zero cost to the Federal Government of Nigeria under the implementation of the ICTN.

“It is important to question why the Nigerian Shippers Council and the Honorable Minister of Marine and Blue Economy have not activated the existing contract with the Antasser-led consortium, instead, they have allowed for duplication of the same contract to another agency of the same government,” the group said.

READ ALSO: In Osun, #EndBadGovernance protesters demand review of Tinubus economic policies

“This duplication seems to either be motivated by corruption and the self-enrichment of certain individuals in positions of power or the refusal of a cabal benefiting from the status quo. The conclusion is easily reached due to the speed and lack of transparency in the processes that led to the recent announcement of the appointment of PE Energy Ltd and -P Lyne Energy Ltd to execute a part of an already awarded contract.”

The CSO urged President Tinubu to immediately stop the unnecessary and unjust duplication of the award of the oil and gas metering and cargo monitoring contract and implement the already existing contract.