Nigeria's Amukpe-Escravos Pipeline Valuation Concerns

Johnson Momodu addresses the critical need for Nigeria to recognize the value of the Amukpe-Escravos Pipeline, which spans 67 kilometers and has a capacity of 160,000 barrels per day. The pipeline is a reliable crude evacuation route from the Niger Delta, operating at around 95% uptime.

A proposed sale of a 40% stake, originally valued at $243 million, has faced complications, including a failed transaction with Conpurex Limited due to unmet payment obligations. The pipeline continues to generate revenue under a joint operational framework, but the risk of selling the asset below its true worth looms, especially with an independent valuation scheduled for 2025, potentially raising the stake's value to between $544 million and $641 million.

Professor Okei Ikechukwu, Executive Director of Development Spec Academy, emphasizes the need for a transparent and competitive bidding process to avoid undervaluing this strategic asset, which is vital for Nigeria's revenue and investor confidence.