NIMASA staff raise concerns over proposed 13.5% revenue concession to private firm 

The agreement, currently awaiting approval from the Federal Executive Council (FEC), would see Royal Diadem Consults receive 13.5% of NIMASA’s total revenue over a 15-year period.

In exchange, the company has proposed to invest N7.54 billion in developing a Maritime Electronic Management System (MEMS), an integrated digital platform aimed at enhancing the agency’s efficiency, transparency, and regulatory compliance.

According to the proposal, 75% of the funding will come as a loan, while 25% will be equity.

Royal Diadem projects that the MEMS initiative will significantly boost operational efficiency through automation and digitisation in areas such as:

The firm also claims the platform will drive a 30% revenue increase within three years, achieve 95% regulatory compliance, create 1,000 jobs, and reduce maritime pollution by 20%.

However, NIMASA staff and maritime experts are pushing back. They argue that the proposed investment is too small to justify handing over a significant portion of the agency’s revenue for such a long period.

Internal memos and messages from NIMASA employees suggest deep skepticism. One staff member described the project as a “glorified Electronic Resource Planning system,” adding that its functions could be managed with standard licensing and support contracts, not a 15-year revenue-sharing agreement.

“There’s no performance benchmark. Even if revenue stays the same, they’re entitled to 13.5% year after year. That’s a massive long-term payout for a system that carries no operational risk or enforcement responsibilities,” one employee said.

An experienced staff member, who has worked on major NIMASA projects like the Deep Blue Project and ERP implementation, questioned the decision to outsource such a project.

“The Agency paid for the Deep Blue Project and Sage X3 ERP system from its own revenues, those were far more capital-intensive. Why can’t we do the same for this MEMS?” he asked.

He also noted the absence of any enforcement or surveillance infrastructure in the proposal, saying that the project lacks the backbone to deliver the outcomes it promises.

Several staff members expressed concerns over the review and approval process, alleging that the proposal bypassed key operational departments.

“To the surprise of most staff, there was no inter-departmental review committee. A proper cross-functional evaluation would have flagged many of the issues we’re seeing now,” said one employee.

Another long-serving staff member called the project “a financial Trojan horse” designed to drain NIMASA’s resources without delivering real value.

“With only N7.5 billion being spent, no investment in surveillance or enforcement assets, and no operational risk-sharing, the deal looks suspicious. It’s as though someone is trying to sneak through a concession deal under the radar,” he added.

“With only N7.5 billion being spent, no investment in surveillance or enforcement assets, and no operational risk-sharing, the deal looks suspicious. It’s as though someone is trying to sneak through a concession deal under the radar,” he added.

However, NIMASA, in a statement reacting to the allegations by its staff, said  “there is no iota of truth in these claims”.  

“To set the records straight, following a comprehensive internal review of operational systems, the current leadership of NIMASA resolved to embrace technology as a means of enhancing the Agency’s capacity to deliver on its regulatory mandate more effectively and to bring into the coffers of government additional revenue ensure funds due government does not end up in private hands. 

“A pivotal innovation in this regard is the Maritime Enhanced Monitoring System (MEMS). This system brings digital traceability to the core of Nigeria’s maritime operations.  

“MEMS provides real-time visibility into vessel movements, operational logs, and regulatory interactions. Through automated alerts, smart invoicing, and centralized data integration, NIMASA can now detect, document, and respond to maritime activities with greater precision and efficiency, eliminating unnecessary bottlenecks while strengthening compliance,” the Agency stated.

NIMASA added that with MEMS, each waste offload can be logged, time-stamped, and automatically billed, converting previously missed opportunities into a consistent revenue stream while ensuring environmental standards are met.

However, the Agency’s statement fails to address the costs and revenue issues raised by the concerned staff.