Hadiza Bala Usman faults BUA chairman’s claims on Rivers port concession termination

Hadiza Bala Usman, special adviser to President Bola Tinubu on policy coordination, has accused Abdul Samad Rabiu, chairman of BUA Group, of “misleading the public” over the termination of the company’s concession at Rivers Port.

In his article, titled ‘Two years of President Tinubu: A business perspective’, Rabiu alleged that the NPA abruptly revoked his company’s concession without prior notice, claiming it was done to favour the associate of the former port chief.

“We started a new business in Port Harcourt four or five years ago under BUA Foods, operating at the Rivers Ports under a concession with the Nigerian Ports Authority,” the BUA chairman had said.

“It was going very well. One day, we woke up to a letter stating that the concession had been revoked, the terminal shut down, and the lease agreement terminated. There was no prior warning, no issue, no conflict.

“Later, we discovered that the Managing Director of NPA at the time decided to close the business simply because our operations were competing with those of her friend. She wanted to impress her friend. That was the only reason. Today, that kind of thing cannot happen.”

Responding to the article in a statement on Sunday, Usman described Rabiu’s version of events as “barefaced lies” aimed at misleading the public and shifting the blame for the group’s contractual failures.

Usman, who served as the NPA managing director from 2016 to 2021, said the facts contradict Rabiu’s narrative.

“This is a blatant lie. It is not just that the BUA Group received numerous notifications and warnings about its negligence of contractual responsibilities; some of these warnings preceded my tenure as Managing Director,” she said.

“The facts of the matter are as follows: BUA Ports and Terminal Limited became concessionaires for Rivers Port Terminal B for a 20-year tenure through a concession agreement contract dated May 11, 2006. The Terminal was handed over to them for use with effect from August 10, 2006.

“As part of the terms of the agreement for the concession, BUA Ports and Terminal Limited was required to commence full reconstruction of Berths 5-8 within 90 days of the handover of the facility.

“Ten years after taking possession of the terminal and operating it, BUA had not commenced the rehabilitation of the quays that it was required to commence in 90 days.

“A notice of default was issued to the company on 11 February 2016, which was before my appointment as MD of the Nigerian Ports Authority.”

Usman said the letter, which cited “BUA’s failure” to honour its development obligations, followed earlier warnings issued in 2014 and early 2016.

However, she said the company “refused to honour this fundamental and material term” of its lease.

“In August 2016, another notice of default was issued under my leadership. Still, no action was taken. A three-month termination notice followed in November 2016,” she added.

“On receipt of the notice of termination, BUA Ports and Terminal sought and obtained a restraining order from the Federal High Court, Lagos, on 18 January 2018, barring the Authority from giving effect to the termination.”

‘RABIU USED HIS ACCESS TO BUHARI TO INFLUENCE DECISIONS IN BUA’S FAVOUR’

Usman said the NPA complied with the restraining order, allowing the company continued access to the facility.

She also alleged that Rabiu used his access to former President Muhammadu Buhari to influence decisions in his company’s favour, which “negated the country’s interests”.

“The company’s actions compromised the integrity of the adjoining berths and violated binding contractual obligations,” she said.

“It is, therefore, curious that the Chairman of BUA Group has continued to push this falsehood aimed at distracting Nigerians from seeing his company’s flagrant disregard of the binding contractual agreement.”

The special adviser urged BUA Group and its chairman to stop the “cheap blackmail” and work towards being a “responsible corporate body” that respects its commitments and contributes to national development.

The BUA Group is yet to formally respond to Bala Usman’s statement at the time of filing this report.