Professor Okey Ikechukwu has advocated for an independent valuation of the Amukpe-Escravos pipeline to ascertain its fair market value before the sale of a 40 per cent stake.
Okechukwu, Executive Director of Development Specs Academy, stated on Arise TV’s Morning Show on Tuesday that this precaution is necessary to prevent government losses during the pipeline sale.
Ikechukwu’s comment has reignited scrutiny of the pipeline’s valuation gap. The plan to sell at the old 2024 valuation of $243 million—lower than the 2025 independent assessment of $544-$641 million—continues to draw attention following the deal’s collapse.
The October 2024 sale between Continental Oil and Gas Limited and Conpurex Limited collapsed due to missed payments, unresolved breaches, and Conpurex’s attempted term alterations that would have unfairly shifted core risks to Continental.
A new attempt to sell a key national asset at its previous value, despite diminished financial standing, raises concerns about valuation, regulation, and governance.
“If we want to really be serious about it, all processes leading up to the presumed attempt to sell it now should be stopped and allow an independent evaluation so that we know what is on the table by current value today, and we don’t lose money in the process of selling the pipeline”.
He added that the pipeline, a performing national asset operating at approximately 95 per cent capacity, should be sold for a fair price.
“A performing national asset, achieving up to 95% efficiency, should only be sold at its proper valuation. Any potential buyer must meet that valuation.”
Okechukwu criticised the plan to sell the country’s assets at the old valuation, arguing it’s unnecessary and a giveaway. He pointed out that the previous valuation processes were terminated in 2024, questioning the use of that old valuation in 2026, three years later.
Drawing an analogy, Okechukwu said, “In 2023, I sought to purchase 20 hectares of land in Abeokuta. We agreed on a price, but I defaulted on payments. Consequently, both parties terminated the transaction. Now, two years later, someone wants to buy the same land at the original, outdated valuation. This is unacceptable”.
“So, if that is allowed to happen, it means there is no governance. It means that people can exercise arbitrary discretion. It means that processes can be routinely violated. And it also raises the question, who is it that we are trying to sell this thing to at nearly less the price in the initial comment, you mentioned the evaluation that was on ground up to the termination of the purchase discussions nearly two years ago, at least up to one year ago. Now, you want to take that evaluation that is no longer valid. You want to bring on the transaction that had been terminated and pretend it is not terminated and conclude the deal in 2026. I don’t think that’s how it should work. I don’t think that’s how it works”.
“This raises the question of sabotage, and beyond all of that, what, where will investor confidence be? If you’re a lender, how would you feel in this kind of environment”, Ikechukwu wondered
The Amukpe-Escravos Pipeline has emerged as a critical evacuation route due to problems with other corridors. Analysts contend that its 160,000 barrel-per-day capacity and consistent uptime exceeding 95% make it a valuable asset, justifying a price that reflects its strong performance and strategic importance.
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