Cargo Tracking: Company Sues FG Over Contract Diversion

A consultant in the implementation of the Advanced Cargo Declaration/Cargo Tracking Note Regime has sued the federal government over alleged attempts to bring in other firms for the project.

Donnington Nigeria Ltd is asking a Federal High Court in Abuja to issue an injunction restraining the Federal Republic of Nigeria from engaging any other consultants, companies, or persons for the implementation of the “Cargo Declaration, Cargo Tracking Note Scheme” to include crude oil exports for all import and export shipments within the Nigerian shipping industry.

Donnington Ltd joins the Attorney General of the Federation, Ministry of Petroleum, Federal Ministry of Finance, and Federal Ministry of Transportation as defendants in the suit. 

In an originating summons by their counsel, Reuben Atabo (SAN), the firm averred that on January 19, 2021, it wrote a proposal through the office of the Chief of Staff to the President for the re-introduction of the advanced cargo scheme to reduce crude oil theft in Nigeria.

The firm averred that following the chief of staff’s letter dated 4th May 2021 conveying the president’s approval for the re-introduction of the scheme and relevant approvals from the various ministries and agencies, it expended over $3 million for the purchase of equipment and items, set up a portal at $370,000, engaged foreign partners from the UK, UAE and recruited staff through a human resource company. 

The managing director of the company, Mohammed Sani, further averred “That after complying with all the requirements, the plaintiff/applicant (Donnington Nigeria Ltd) observed that the Ministry of Transportation was trying to introduce another company to render similar services.”

No date has been fixed for the hearing.