Stakeholders from the Niger Delta region have raised concerns over the exclusion of their companies from owning oil blocks during the 2022/23 mini bid round conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). In a letter addressed to President Bola Tinubu and signed by their lawyer, Blessing Agbomhere, the group warned that the alleged exclusion could trigger renewed militancy in the region if not addressed.
Prominent stakeholders, including Undiandeye Akonfe, James Okeati, Victor Okiri, Fortune Nakoro, Kenneth Anyanwu, Okwara Idika, Akpan Edem, Otetubi Tolulope, and Olali Solomon, appealed to the President to establish a committee to review the bidding process. They argued that the process lacked transparency and unfairly disenfranchised Niger Delta companies despite their compliance with all stipulated requirements.
The group also called for an investigation into the financial transactions related to data sales and the criteria used to disqualify bidders.
According to their lawyer, the group asserts that several Niger Delta-based companies, known for their technical expertise and financial capacity, participated in the bidding process. However, they were systematically excluded despite being significant contributors to Nigeria’s oil and gas sector and bearing the environmental and economic burdens of oil exploration.
The stakeholders alleged that the NUPRC imposed exorbitant data purchase requirements, compelling companies to buy datasets worth millions of dollars exclusively from offshore vendors such as PGS and TGS, without providing alternative options.
“This requirement imposed severe financial strain on smaller local companies, especially those from the Niger Delta,” the lawyer stated.
The group further claimed that after meeting the stringent conditions, including costly data purchases, the NUPRC unilaterally changed the bidding terms without prior notification or concessions.
They alleged that previously allocated assets were unjustly withdrawn and placed back into the bidding pool, nullifying the investments made by initial participants. Revised terms, they argued, granted preferential treatment to select parties, offering them access to cheaper data and other advantages, while disadvantaging compliant original bidders.
The Niger Delta stakeholders are urging President Tinubu to act swiftly to address the alleged injustices, ensuring fairness and inclusivity in the oil licensing process. They warned that failure to do so could exacerbate tensions in the region, undermining national stability and progress.
