A governance expert has raised concerns over attempts to revive the sale of a 40 percent stake in the Amukpe–Escravos Pipeline, warning that resurrecting a previously terminated transaction could harm investor confidence. Jide Olatuyi, Managing Director of Policy Management Consult Services, said the original deal, priced at $243 million, collapsed due to unmet contractual obligations. Independent valuations in 2025 placed the same stake between $544 million and $641 million, creating a significant gap that has prompted calls for a new competitive bidding process. Olatuyi emphasized that the issue is not commercial rivalry but governance, stressing that transparency is critical to maintaining credibility in Nigeria's oil and gas sector.
Olatuyi stated that stakeholders, including Sterling Bank and AMCON, have advocated for a transparent process aligned with current market values. The Amukpe–Escravos Pipeline, with a capacity of 160,000 barrels per day and uptime above 95 percent, is a key crude evacuation infrastructure in the Niger Delta, linking inland fields to export terminals. He argued that Nigeria must now prove its commitment to fair processes, noting that without trust, capital will move to more transparent jurisdictions. Olatuyi urged authorities to adopt an open, competitive framework for any future sale to protect public value and attract serious investors.
Officials from the Nigerian Upstream Petroleum Regulatory Commission and members of the technical committee overseeing the initial transaction did not respond to requests for comment. The controversy emerges as the Federal Government seeks to boost energy sector investment. The outcome of the pipeline stake decision may influence how international investors view Nigeria's adherence to valuation discipline and regulatory transparency.
Jide Olatuyi questions the revival of a terminated pipeline sale despite a 2025 valuation showing the asset's worth more than doubled since the original $243 million deal. Proceeding without a new competitive process risks signaling that Nigeria prioritizes expediency over transparency. Investors like Sterling Bank and AMCON, already tied to the asset, may see diminished returns if market value is not reflected. A non-competitive sale could deter future capital in a sector where trust is now as crucial as output capacity.
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