Bureau Of Public Procurement Blocks Nigerian Ports Authority's Bid To Cancel 99 Approved Contracts, Re-Award To Handpicked Contractors

The Bureau of Public Procurement (BPP) has rejected a proposal and request submitted by the Nigerian Ports Authority (NPA) seeking to rescind and cancel a total of 99 contracts that had previously received approval from the BPP and were subsequently awarded in 2023.

According to a confidential document leaked from the BPP and obtained by SaharaReporters, the NPA had initially secured approval from the BPP for the aforementioned contracts, with some of the projects spanning a contractual period of up to 10 years.

However, in a surprising turn of events, the NPA, via a letter dated October 28, 2024, bearing Reference Number MD/17/MF/VOL.XX/820, proceeded to request that the BPP grant a "No Objection" clearance for the adoption of the Restricted Tendering Method.

SaharaReporters learnt that this method, which essentially entails handpicking contractors, was sought by the NPA for the procurement of the 99 projects in question. The BPP, however, remained resolute in its opposition to the NPA's request, citing concerns regarding the transparency and competitiveness of the procurement process.

The NPA's request for the adoption of the Restricted Tendering Method raised concerns about potential biases and favoritism in the contractor selection process.

According to the leaked document, the BPP rejected the NPA’s request and plan, and ordered the ageny to provide proper and accountable explanations and details of the supposed awarded projects.

Industry stakeholders, legal experts, and insiders caution that this move could lead to prolonged legal battles, disrupt essential port operations, and damage the reputation of Nigeria’s maritime administration.

The cancellation targets contracts awarded to several firms providing cargo survey services across the country's ports.

According to an insider, these services are critical to ensuring the safety, compliance, and integrity of goods during transportation, and have been key to improving NPA's efficiency and revenue generation.

Stakeholders maintain that the contracts were awarded after proper procedures were followed.

"Many of these companies have made significant capital investments in infrastructure and equipment," a source said.

The source added, "There’s no clear reason for the proposed cancellation, other than possible personal interests within the NPA's new leadership. There’s no evidence of inefficiency or breach of contract."

Certain stakeholders, aware of the leadership’s intentions, have raised questions about the legality and ethics of such a decision.

SaharaReporters gathered that the NPA had written to the BPP with intent to withdraw the contracts, and that the BPP queried the NPA why it had not uploaded them as part of its procurement.

Another source said, “Apparently, they want to withdraw the contracts and re-award them to their cronies. Don't forget it's a new management at NPA. These contracts were awarded by the former management.”

The NPA in the letter had said, “The Purpose of this letter is to seek the consideration and approval of the Bureau of Public Procurement (BPP) for the issuance of Due Process "No Objection" to adopt selective tendering for some of the Nigerian Ports Authority's (NPA) key projects that have critical impact on her operations vis-à-vis revenue generation.

“The decision to adopt selective tendering is to ensure speedy, timely and quality delivery/execution of the projects within the 2024 budget year in view of the fact that the Authority's Approved 2024 Budget came very late.

“Considering the short period remaining for the 2024 financial year and in order to carry out the procurement processes expeditiously with a view to having value for money, the adoption of "Selective Tendering" Method is the most reasonable and realistic option at this crucial time.”

However, the BPP in response to the letter, said after carefully reviewing the NPA's submission, it observed that the NPA is seeking to adopt Restricted Tendering Method for the procurement of some goods, works and services that the Bureau had earlier granted Due Process "No Objection" for their implementation.

Explaining further, the BPP said, “It should be recalled that the NPA had earlier vide a letter with Ref. No. MD/17/MF/VOL.XX/359 dated May 18, 2023, requested for Due Process "No Objection" to adopt Restricted Tendering Method to urgently procure seventy-one (71) No. projects under its FY 2023 Budget due to their impact on the operations and revenue generation of the Authority.

“The Bureau in consideration of the urgency vide letter Ref. No. BPP/S.1/A&WR/23/Vol.I/157 dated June 07, 2023 approved the request.

“It is therefore strange that the NPA included the same projects that ought to have been completed in this request.

“The Bureau has therefore expunged these projects that had earlier been approved from the list, as the Bureau cannot grant approval for the same projects to obviate the Government from any litigation.

“In view of the above, the NPA is requested to furnish the Bureau with details of the 2023 procurement records and budget implementation status in order to determine the status of these 53 No. projects listed above.

“This is in line with the SGFs Circular Ref. No. PROC/OSGF/BPP/ 709/89 dated January 19, 2022.”

The BPP further recalled that following the NPA's letter Ref. No. MD/10/FMMBE/VOL.XX/420 dated June 28, 2024 where the agency requested for the cancellation of the Due Process Certificate of "No Objection" issued by the Bureau for the engagement of Agents for Collection of Oil Terminal Dues (OTD) and Compulsory Pilotage Royalty (CPR) and Agents for Crude Oil Monitoring at the NPA Pilotage Districts, the Bureau in a letter with Ref. No. BPP/S.1/A&WR/24/Vol.I/181 dated August 9, 2024 cancelled the procurement and directed the NPA to re-procure the services through Open Competitive Bidding.

The BPP strictly ordered the “NPA should comply with this directive”.

Also, the BPP noted that the NPA through Open Competitive Bidding procured the services of consultants for the provision of Cargo Survey Services and Towage Services at Easter Ports in 2018 and stevedoring services in 2017 for a contract period of 10 years respectively.

It noted, “It is strange that NPA included these services in its request when there appear to be subsisting contracts of 10 years each.”

According to BPP, “There is (a) need for the NPA to furnish the Bureau with details of the projects for a review in order to ensure that the authority is not procuring the same services and to obviate Government from unnecessary litigations.

“Therefore, the request to adopt a restricted tendering method to procure the Offshore Stevedoring Services, Cargo Surveying Services and Towage Services in the Eastern Ports cannot be approved.”

The BPP also noted that with respect to procurement of vehicles, the Bureau had earlier in a letter with Ref. No. BPP/S.1/SP/24/Vol.I/138 dated May 07, 2024 granted Due Process "No Objection" to the Federal Ministry of Marine and Blue Economy (FMMBE)/NPA for procurement of vehicles under 2023 Budget.

“The Bureau hopes that this is not a duplication of the same vehicles listed in the request. There is a need for the NPA to clarify the procurement of these vehicles,” according to the leaked document.

The Bureau further noted that NPA has not uploaded its Procurement Plan for the year 2024 to the Nigeria Open Contracting Portal (NOCOPO).

It ordered, “The NPA should ensure to upload its 2024 Procurement Plan on NOCOPO before proceeding with the Procurements. Also, procurement records for the year 2023 should be uploaded on NOCOPO.

“This is in line with the SGF's Circular Ref. No. PROC/OSGF/BPP/709/89 dated January 19, 2022.”

The BPP stressed, “In view of the above, Due Process "No Objection" cannot be granted to the Nigerian Ports Authority (NPA), to adopt Restricted Tendering Method for the Procurement of the ninety-nine (99) No. projects as most of the projects had been earlier approved by the Bureau.

“Rather, the NPA should furnish the Bureau with details of the 2023 Procurement Record, Budget implementation and completion status of the 53 No. projects earlier approved for the Authority under the 2023 Budget.”

The Bureau added the NPA should re-prioritise 43 projects it listed out in the document and adopt Open Competitive Bidding in line with Sections 24(1) and 25(2) of the Public Procurement Act, 2007 for less priority projects.

“The Bureau is certain that open competition will guarantee the achievement of better value for money to the Government,” it added.