Amukpe-Escravos Pipeline Sale Sparks Transparency Concerns

The ongoing sale of a 40% stake in the Amukpe-Escravos Pipeline has triggered scrutiny regarding the transparency of Nigeria's oil and gas sector. Jide Olatuyi, Managing Director of Policy Management Consult Services, expressed concerns that the transaction's handling could influence investor confidence at a time when the country is competing for scarce global energy capital.

The previous attempt to sell the stake for approximately $243 million collapsed due to unmet contractual obligations, while an independent assessment in 2025 valued the stake between $544 million and $641 million, highlighting a significant disparity. Olatuyi emphasized the need for a new competitive bidding process to ensure that asset valuations reflect prevailing market conditions and deliver maximum value.

He warned that without transparency, investor confidence in Nigeria's commercial regulatory processes would diminish, leading investors to seek opportunities elsewhere. The Amukpe-Escravos Pipeline, with a transport capacity of 160,000 barrels per day, plays a critical role in transporting crude oil from inland production fields to export terminals in the Niger Delta.