A recent development has unfolded in the dispute between the BUA Group and Hadiza Bala Usman, Special Adviser to President Bola Tinubu on Policy Coordination. The BUA Group has challenged Usman to specify the clause that the company allegedly violated, which led to the termination of their port concession agreement with the Nigerian Ports Authority (NPA). Thismove comes in response to Usman’s claims justifying the abrogation of the concession.
The BUA Group has questioned Usman’s decision to disregard court judgments and the arbitration process initiated by former President Muhammadu Buhari. According to the company, they had entered into a valid long lease agreement with the NPA in 2006 to rehabilitate and operate Terminal B at Rivers Port in Port Harcourt, Rivers. However, Usman, during her tenure as NPA Managing Director, allegedly ignored BUA’s requests and obligations under the agreement.
In 2016, BUA wrote to the NPA to report environmental and safety concerns and seek approval for remedial works, as mandated by Article 8.4 of the lease. Instead of addressing these concerns, Usman issued a termination notice and shut down the terminal without prior warning or consultation. The company claims that this action was a pretext to terminate the agreement and was not in line with the dispute resolution clause.
The BUA Group noted that these lapses led to significant impediments to their operations and resulted in disputes between the parties. After the unlawful termination, BUA approached the Federal High Court, which granted an injunction restraining the NPA from proceeding with termination. The NPA then referred the dispute to arbitration, as stipulated in the agreement.
Despite this, Usman unilaterally decommissioned the berths, violating both the agreement and a court injunction. The BUA Group has invited her to publicly cite the specific clause that authorizes this action, emphasizing that the concession agreement granted her no such power. The company also alleged that Usman’s actions were motivated by personal animosity and abuse of office, leading to estimated losses of over $10 million.
The BUA Group has lauded the Tinubu-led administration for consolidating on due process and restricting arbitrariness. Following Usman’s removal from office, the NPA, under new leadership, implemented the Attorney General’s position, and BUA was granted formal approval to resume reconstruction works in 2022. The company has since invested over $65 million in the project, with completion expected in the first quarter of 2026.
In a statement, the BUA Group emphasized that the present administration’s inclination towards due process has restricted the kind of arbitrariness exhibited by Usman during her tenure as NPA MD. The company’s challenge to Usman to specify the violated clause highlights the ongoing dispute between the parties and underscores the need for transparency and accountability in the concession agreement.
