Stakeholders Write Tinubu, Seek Probe of Alleged Exclusion of N’Deltans from Oil Bid

Sunday Aborisade in Abuja

Stakeholders in the Niger Delta region have appealed to President Bola Tinubu to probe the alleged exclusion of their companies from the 2022/23 mini bid round and licensing of oil blocs by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

They warned of the possibility of another round of unrest and militancy in the region if the exercise was not revisited.

The stakeholders gave the warning in a letter they addressed to President Bola Tinubu dated December 31, 2024, through their lawyer, Blessing Agbomhere.

A copy of the letter, made available to THISDAY in Abuja yesterday, drew the attention of the President to what they described as the flagrant disregard for the provisions of the Petroleum Industry Act, Local Content Laws and the 1999 Constitution as amended by the NUPRC while carrying out the bid round and licensing of oil blocs.

It lamented that the development was happening at a time the federal government is working  to ramp up the country’s oil production which now stands at about 1.7 million barrels per day.

Members of the Niger Delta stakeholders included, Undiandeye Akonfe;  James Okeati;  Chief Victor Okiri; Fortune Nakoro; Kenneth Anyanwu; Okwara Idika;  Akpan Edem; Otetubi Tolulope and Olali Solomon.

They appealed  to  Tinubu to, among other things, set up a committee to analyse the mini bid round and licensing as carried out by the NUPRC.

They  insisted that the process lacked transparency and disenfranchised them, despite having fulfilled all the requirements for participation.

Part of the letter read:  “Your Excellency will kindly recall that some deep offshore blocs were put on offer for the 2022/23 Mini Bid Round and other blocs which cut across onshore, continental shelf and deep offshore terrains were also put on offer for the Nigeria 2024 Licensing Round by the NUPRC and an invitation for tender placed to this effect on the website of the NUPRC.

“It is our clients instruction that upon the invitation for interested investors to bid for these blocs, several investors bid including companies with the technical and financial capability whose majority shareholders are indigenes of the Niger Delta region and/or whose head offices are situated therein.

“It is also our client’s instruction that, despite the fact that Niger Delta stakeholders are key contributors to Nigeria’s oil and gas sector, Niger Delta Indigenous investors were unjustly and systematically excluded from the licensing process.

“This is despite their substantial investments, environmental sacrifices, and statutory rights under the Petroleum Industry Act and the Nigerian Content Development and Management Act. Companies were coerced into purchasing data worth millions of dollars from select offshore vendors (PGS and TSG) without alternatives,” the lawyer said.

He added that this requirement imposed severe financial burdens on participants, creating a barrier for smaller local companies, particularly those in the Niger Delta.

“After bidders submitted applications and met stringent conditions, including expensive data purchases, NUPRC unilaterally altered the terms without prior notice or concessions to participants. Assets initially allocated were unjustly withdrawn and returned to the bidding ‘basket,’ rendering previous investments null and void.

“Revised terms facilitated access to cheaper data and other advantages for certain preferred parties, unfairly putting at a disadvantage original bidders who complied with stricter requirements. These actions undermine fair competition, eroded investor confidence, and violated procurement guidelines, leading to targeted disqualification of Niger Delta companies,” Agbomhere alleged.

He argued that companies from the Niger Delta, despite fulfilling financial and procedural requirements, were unjustly disqualified through ‘opaque processes’, alleging that this exclusion marginalised regional players, exacerbated inequality, and disregarded the principle of inclusive development in Nigeria’s oil and gas sector.

“Achieving sustainable peace and development in the Niger Delta region requires a commitment from all stakeholders, especially the federal government. Local content policies in the Niger Delta should aim not only to create jobs but promote economic opportunities and ensure local investors partake in these opportunities and the wealth generated by the oil industry.

“ It is by supporting local businesses and creating an environment of transparency and accountability that a more sustainable and peaceful future for the region can be guaranteed. Be all these as they may, we have our clients’ instructions to respectfully request Your Excellency to do as follows: Set up a committee to carry out a thorough and independent investigation into the financial flows linked to data sales and the criteria used for disqualifications.

“Re-evaluate disqualified bids with transparent and equitable criteria, ensuring fair treatment of all participants, especially Niger Delta companies. Develop safeguards to prevent unilateral changes in bid terms, mandatory offshore data purchases, and discriminatory practices.

“Our clients are implicitly confident in the capacity of Mr. President to address these concerns with a view to promoting a greater sense of  fairness and inclusivity of the Niger Delta people in the allocation, sharing and utilisation of the abundant material resources that lie in their region,” the letter added.