Niger Delta stakeholders warn of unrest over oil bloc exclusion

Stakeholders from the Niger Delta region have raised alarm over what they termed as “impending unrest and militancy” in the oil-rich region due to the exclusion of companies owned by their kinsmen from the 2022/23 mini bid round and licensing of oil blocs by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

In a letter to President Bola Tinubu dated December 31, 2024, through their lawyer, Blessing Agbomhere of Blessing Agbomhere and Partners, they highlighted 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 during the bid round and licensing process.

According to the letter, the groups represented by Chief Undiandeye Akonfe, James Okeati, Chief Victor Okiri, Fortune Nakoro, Arc. Kenneth Anyanwu, Okwara Idika, Akpan Edem, Otetubi Tolulope, and Olali Solomon appealed to President Tinubu to set up a committee to analyse the bid round and licensing process. They insisted that the process lacked transparency and disenfranchised them, despite their full compliance with all participation requirements.

The letter in part reads: “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 Nigerian Upstream Petroleum Regulatory Commission (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 bidded, 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 clients’ 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 despite their substantial investments, environmental sacrifices, and statutory rights under the Petroleum Industry Act and the Nigerian Content Development and Management Act.”

The stakeholders further alleged: “Companies were coerced into purchasing data worth millions of dollars from select offshore vendors (PGS and TSG) without alternatives. 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 disadvantaging 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.”

The letter emphasised the regional impact of these decisions: “Companies from the Niger Delta, despite fulfilling financial and procedural requirements, were unjustly disqualified through opaque processes. This exclusion marginalises regional players, exacerbates inequality, and disregards the principle of inclusive development in Nigeria’s oil and gas sector.”

The stakeholders argued that sustainable peace and development in the Niger Delta require inclusive participation in economic opportunities and transparency in processes: “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.”

Finally, the stakeholders made specific demands to President Tinubu: “Be all these as they may, we have our client’s instruction 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, having regard to Your Excellency’s enviable antecedents,” the letter concluded.

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