Why FG must always honour agreements

GENERALLY, the Nigerian government both the past and the present have credibility problem amongst the business class particularly private investors both within and outside the country when it comes to honouring agreements.
Those having this notion may not be far from the truth in view of numerous antecedents that had played out and still playing out in some controversial agreements some private individuals or private companies entered into with the Federal Government which suddenly hit the rock over flimsy reasons.
Using the country’s aviation sector as an example of where government has become notorious for not honouring agreements, presently, there are over 10 of such agreements which were earlier signed and sealed only for government to renege on its own part.
Among such agreements which later gone awry based on excuses from the government officials are Bi-Courtney Aviation Services (BASL), managers of the MMA2 private terminal at the local wing of the Murtala Muhammed Airport and the Federal Airports Authority of Nigeria (FAAN), the failed agreement between Maevis Limited and FAAN, the lingering tussle between the Chief Harry Akande, the business mogul and FAAN over the construction of a five star hotel at the international wing of the airport, the now failed agreement between the Federal Government and Virgin Atlantic Airways of Sir Richard Branson, the controversial termination of the earlier gentle man agreement between Pan Express and FAAN and many others.
From records, before all these agreements were signed, representatives from all sides including government’s representatives were involved in the discussions and all areas of interests and the final agreements before each side voluntarily appended their signatures.
In other words, these agreements after been signed and sealed have become binding and can only be changed after due consultation and persuasion devoid of any breakdown of the rules guiding such agreements and this is what has made and still making business partnerships successful and profitable in countries around the world.
It is therefore worrisome while such agreements don’t work out in the country’s aviation sector in view of the high rate of controversial agreements between government through its agency, FAAN and the private concessionaires.
What is similar to all the mentioned sick agreements is that in all, it is government (FAAN) that has chosen to back out of the already signed agreements on the excuse that they are not favourable to government.
If the government officials were really competent, why suddenly wake up after the flight has taken off only to call for it to be aborted; while backing down after signing the agreements or was it that the government officials did not understand what an agreement is?
From all indications, the problem is not with the concessionaires but definitely with the government and its so called representatives whose actions or inactions have ended up creating bad impression and scared investors away from Nigeria.
Well, there seems to be light at the end of the tunnel for the aggrieved concessionaires soon following the declaration of the Nigeria’s minister of information, culture and tourism, Alhaji Lai Mohammed who last week publicly agreed that the continuous flouting of agreements by government would send a very wrong signal to the international community that the country does not respect business pact.
According to him; “Agreements must be obeyed. We cannot continue as a government to look at colour, religion and ethnicity in making decisions. When you draw an agreement, it is not the fault of the other party if you don’t come with competent people to draw up an agreement. You can’t blame the other party. Agreements must be obeyed. We will obey the agreement as a government with the case of MMA2.”
While the Crucial Moment urged the minister to prevail on government to ensure the agreement between it and the Bi-Courtney management is obeyed, the same should apply to other mentioned agreements as it will go a long way in bringing credibility to the system. Presently the continuous flouting of the agreements has contributed to the crisis in the sector.
There is however, the need for government to review the competency of those who will be representing it when issues of business agreements with private and individual parties within and outside Nigeria emerge. Due to the incompetency of this very few, Nigeria’s credibility has been greatly dented.