Niger Delta Stakeholders Warn of Unrest Over Alleged Exclusion from Oil Licensing Process

 

By: Chinedu Echianu

Stakeholders from the Niger Delta region have raised alarm over the exclusion of their companies from the 2022/23 mini bid round and 2024 oil bloc licensing conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

They warn that the “unlawful” exclusion, if unaddressed, could lead to renewed unrest and militancy in the region.

In a letter dated December 31, 2024, and addressed to President Bola Tinubu, the stakeholders, through their lawyer, Blessing Agbomhere of Blessing Agbomhere and Partners, accused the NUPRC of violating the Petroleum Industry Act, Local Content Laws, and the Nigerian Constitution during the bidding process.

The letter, titled “The Unlawful Exclusion of Niger Delta Indigenous Companies/Stakeholders from the Recently Conducted 2022/23 Mini Bid Round and 2024 Licensing Round by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Likely Negative Security Impact in the Region,” urged the President to act swiftly to avert a potential crisis.

The group, which includes prominent Niger Delta stakeholders like Undiandeye Akonfe, James Okeati, Chief Victor Okiri, and others, called for the establishment of a committee to investigate the bidding process.

They alleged that the process lacked transparency and systematically disenfranchised Niger Delta investors, despite their compliance with all requirements.

“Niger Delta investors were unjustly and systematically excluded from the licensing process despite their substantial investments, environmental sacrifices, and statutory rights under the Petroleum Industry Act and the Nigerian Content Development and Management Act,” the letter stated.

The stakeholders further accused the NUPRC of imposing financial burdens by coercing companies to purchase expensive data from selected offshore vendors, creating barriers for smaller local firms.

They also alleged unilateral changes to bid terms, which disadvantaged original bidders.

“Revised terms facilitated access to cheaper data and other advantages for certain preferred parties, unfairly disadvantaging original bidders who complied with stricter requirements. These actions undermine fair competition, erode investor confidence, and violate procurement guidelines,” the letter adds.

The group emphasized the critical role of Niger Delta stakeholders in Nigeria’s oil and gas sector and called for greater inclusivity to ensure sustainable peace and development.

They urged President Tinubu to:

1. Investigate the financial flows linked to data sales and disqualification criteria.

2. Re-assess disqualified bids with transparent and equitable standards.

3. Develop safeguards to prevent future discriminatory practices in bidding processes.

“Achieving sustainable peace in the Niger Delta requires transparency, accountability, and a commitment to supporting local businesses. We are confident in Your Excellency’s capacity to address these concerns and promote fairness in the allocation of the region’s resources,” the letter concludes.

This development comes as the Federal Government intensifies efforts to boost Nigeria’s oil production, currently at about 1.7 million barrels per day. The stakeholders have urged the President to take decisive action to foster fairness and equity in the oil and gas sector, ensuring long-term stability in the Niger Delta.