A proposed revenue-sharing agreement between the Nigerian Maritime Administration and Safety Agency (NIMASA) and Royal Diadem Consults Ltd has sparked internal dissent, with staff and experts questioning the project’s cost-benefit logic and transparency.
The deal, now awaiting approval from the Federal Executive Council (FEC), would entitle Royal Diadem to 13.5% of NIMASA’s total revenue over 15 years in exchange for developing a Maritime Electronic Management System (MEMS) at a cost of ₦7.54 billion.
According to the proposal, the system would automate and digitize NIMASA’s operations ranging from vessel surveillance to waste management under the promise of improved regulatory compliance, increased revenue, and job creation. Royal Diadem estimates the MEMS platform could boost revenue by 30% within three years and cut maritime pollution by 20%.
Critics: “Massive Payout for Minimal Risk”
Internal staff memos seen by reporters express deep skepticism. One employee described the MEMS initiative as a “glorified ERP system” that offers no performance-based metrics and carries zero operational or enforcement risk for the vendor.
Critics argue the deal is financially lopsided:
- NIMASA’s 2022 revenue was ₦129 billion, meaning 13.5% would be ₦17.4 billion annually.
- Over 15 years, that would translate to ₦261 billion, a return of 3,380% on the initial investment.
- Given NIMASA’s earnings are mostly in U.S. dollars, actual payouts could soar far higher.
- Analysts estimate Royal Diadem could recoup its full investment nine times over in just one year.
“There’s no reason a ₦7.5 billion IT project should drain hundreds of billions in agency revenue,” a staff member familiar with past large-scale projects, like the Deep Blue Project and Sage ERP, said.
Questions Over Transparency and Due Process
Staff also allege the proposal bypassed internal checks, including interdepartmental review.
“There was no cross-functional committee review. That’s highly irregular for a deal of this magnitude,” said a senior employee.
Another insider referred to the deal as a “financial Trojan horse,” calling it an attempt to slip in a long-term concession under minimal scrutiny.
NIMASA Defends Agreement, Cites Technological Transformation
In a statement, NIMASA rejected the criticisms, describing MEMS as a “pivotal innovation” to enhance transparency, compliance, and digital traceability in Nigeria’s maritime operations.
“MEMS provides real-time visibility into vessel movements and regulatory interactions… converting missed opportunities into consistent revenue streams,” the agency stated.
However, NIMASA did not address the specific concerns over cost, revenue sharing, risk allocation, or lack of enforcement infrastructure in its rebuttal.
What’s Next?
As the deal awaits FEC approval, pressure is mounting for a more detailed public and inter-agency review. Maritime industry stakeholders and civil society groups have called for greater transparency, performance benchmarks, and safeguards to protect public revenue.
