Stakeholders Warn NPA Over ‘Fraudulent’ Move to Cancel 10-Year Cargo Survey Deals

A brewing storm is rocking Nigeria’s maritime industry following reports that the Nigerian Ports Authority (NPA) is moving to terminate legally-awarded Cargo Survey (CS) contracts signed in 2019 for ten years.

The contracts, which are expected to run until 2029, were reportedly issued in full compliance with procurement regulations.

Stakeholders, under the umbrella of the Maritime Integrity Movement (MIM), have raised alarm over what they describe as an illegal and suspicious attempt to reallocate the multi-billion-naira contracts to preferred companies linked to top officials.

NPA cites ‘operational efficiency’ as justification

In a letter dated September 2025, NPA Managing Director Abubakar Dantsoho reportedly defended the planned cancellation, citing “operational needs and efficiency.” However, affected contractors insist they have fully complied with all contractual terms and have not been accused of underperformance.

The Maritime Integrity Movement says the move contradicts due process, especially since the NPA had not held any formal consultations or reviews with the companies before deciding to scrap the deals.

BPP had rejected earlier attempts to re-award contracts

MIM Convener Lucky Abegunde revealed that this is not the first time the NPA has attempted to scrap the contracts.

He said the Authority previously approached the Bureau of Public Procurement (BPP) seeking a “No Objection” to reprocure the services through selective tendering, a move that the BPP rejected.

“The BPP had warned against abuse of restricted procurement and directed the NPA to adopt open competitive bidding in line with the Public Procurement Act, 2007,” Abegunde stated.

He added that despite the BPP’s initial rejection, the NPA later obtained restricted procurement approval for some of the cargo survey contracts, allegedly awarding them to companies connected to powerful figures within the Authority.

Allegations of intimidation and deliberate sabotage

The group further accused the NPA of deliberately withholding invoices and creating administrative bottlenecks to frustrate existing contractors and weaken their financial positions.

According to the stakeholders, such actions are aimed at paving the way for politically connected companies to take over the lucrative contracts under the guise of “restructuring” or “efficiency improvement.”

Legal and financial risks for the government

Maritime observers warn that the abrupt termination of valid contracts without proven breach could expose the federal government to multiple lawsuits, potential damages, and reputational loss in the international maritime community.

“The government could end up paying billions in compensation if these firms go to court,” one industry analyst cautioned, noting that similar terminations in the past had led to costly litigation.

Calls for anti-graft investigation

The Maritime Integrity Movement has urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to launch an investigation into what it described as “a fraudulent attempt to cancel and reallocate the cargo survey contracts.”

Abegunde warned that unless the presidency and relevant agencies intervene, the NPA’s action could deepen distrust within the industry and discourage private investment in Nigeria’s maritime sector.

Group Applauds NPA for Driving Non-Oil Export Growth

Legit.ng earlier reported that the Port Reforms Advocacy Network (PRAN) has praised the Managing Director of the Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho, for his bold reforms that are modernising Nigeria’s seaports and boosting trade competitiveness.

In a statement signed by its president, Prince Chijioke Adimora, PRAN described Dantsoho’s leadership as visionary, stressing that his policies are driving non-oil export growth, enhancing efficiency, and positioning Nigeria as a regional maritime hub.

At the ongoing United Nations General Assembly, Dantsoho revealed that Nigeria recorded a 19.6 per cent increase in non-oil exports in the first half of 2025

Source: Legit.ng