Reset the Sale Process for the Amukpe‑Escravos Pipeline

By Mohammed Abubakar

Professor Okey Ikechukwu, Executive Director of the Development Specs Academy, spoke on Arise News and urged that the sale process of the Amukpe‑Escravos pipeline be halted, terminated, and restarted from scratch. He warned that continuing under the current terms would result in the loss of a key national asset at an undervalued price, damaging governance and public trust.

Ikechukwu’s statement highlights a broader issue: the handling of strategic assets in Nigeria. The pipeline, which was under a sale agreement that was formally terminated in October 2024 after missed payments and breached conditions, has shown a tendency to be revived despite its cancellation.

The original valuation of the 40 percent stake was about $243 million. Independent assessments in 2025 place the stake between $544 million and $641 million, a difference of nearly $300 million. The pipeline itself has a capacity of 160,000 barrels per day and operates with an uptime consistently above 95 percent, making it a reliable evacuation route in the Niger Delta.

Financed by Nigerian banks and Afrex-imbank, the pipeline continues to generate revenue. Selling it at the earlier price would therefore represent a loss of value for the nation. Ikechukwu compared the situation to a failed private land deal that, if revived at the original price, would be viewed as a commercial mistake rather than a success.

When the asset belongs to the Nigerian people, the stakes shift from a private inconvenience to a national concern. Lenders had raised legitimate concerns from the outset, and a proper termination should have led to a transparent restart based on current realities. Instead, remnants of the collapsed deal persist, raising doubts about the integrity of the process.

Such persistence signals a lack of credibility for ongoing oil and gas reforms that emphasize transparency, competition, and seriousness to investors. The sector’s image is at risk if rules appear elastic when certain interests are involved.

Local and foreign investors, as well as lenders, have observed that strategic assets are often treated with less care than private property. A seller typically checks current market value rather than accepting an outdated offer. When the asset is national, standards appear to relax.

Nigeria is not in a position that requires offloading critical infrastructure at fire‑sale prices. If divestment is necessary, it should occur at market value through an open, competitive bidding process that commands respect and maximises returns. This would avoid back‑door deals, discounts, or the influence of a failed previous transaction.

The recommended approach is to close all remnants of the previous process, commission a fresh independent valuation reflecting current operational strength and market conditions, and institute a transparent competitive process with clear rules and stakeholder alignment. National interest and long‑term value preservation should outweigh administrative convenience.

Ikechukwu’s call for action underscores the importance of due process, national interest, and value for money when managing strategic assets. The case of the Amukpe‑Escravos pipeline should not set a precedent for future asset sales. It is time to reset the sale process.

•Abubakar, an energy sector analyst, writes from Abuja.

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