Stakeholders from the Niger Delta region have petitioned President Bola Ahmed Tinubu, alleging irregularities in the licensing process of oil blocs conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The petition accuses the commission of breaching key laws governing the oil sector.
In an open letter dated December 31, 2024, the stakeholders claimed that the licensing process for the 2022/23 mini bid round violated the Petroleum Industry Act (PIA), Local Content Laws, and the 1999 Constitution (as amended).
The group warned of potential unrest and militancy in the region if their grievances are not addressed.
Represented by their lawyer, Blessing Agbomhere Esq., the stakeholders stated that the alleged violations come at a time when the Federal Government is striving to boost Nigeria’s oil production, currently at approximately 1.7 million barrels per day.
The petitioners, including prominent figures such as Undiandeye Akonfe, James Okeati, Chief Victor Okiri, and others, called on President Tinubu to establish a committee to review the bid round and licensing process.
They argued that the process lacked transparency and disenfranchised Niger Delta companies, despite their compliance with all participation requirements.
The stakeholders alleged systematic exclusion of local companies, asserting that they were coerced into purchasing costly data from selected offshore vendors, a move that created significant financial barriers.
They claimed that after fulfilling stringent conditions, including expensive data acquisitions, the NUPRC altered the licensing terms unilaterally, nullifying their prior investments and reallocating assets initially assigned to them.
These actions, they said, not only undermined fair competition but also eroded investor confidence and violated procurement guidelines, leading to the disqualification of Niger Delta companies.
The petition further emphasized the importance of adhering to local content policies to create economic opportunities for regional stakeholders and ensure their participation in the wealth generated by the oil industry.
The group argued that fostering transparency and supporting local businesses are critical to securing a peaceful and sustainable future for the Niger Delta.
The stakeholders have urged the government to act swiftly to ensure fairness, transparency, and accountability in the oil bloc licensing process, warning that failure to do so could exacerbate tensions in the oil-rich region.
