Oil Block Sale: Stakeholders Push for More Stakes for Oil Producing States

• Want 20% equity for host communities

Onyebuchi Ezigbo in Abuja

As part measures to promote Nigerian local content through genuine participation and empowerment of oil producing communities, a concerned group – the Nigerian Local Content Conference (NLCC) has asked the federal government to grant oil bearing states concession to acquire oil blocks in the forthcoming 2026 oil block bid rounds.

It also urged President Bola Tinubu to use his good offices to approve the seeding of 20 percent equity allocation to Nigerians per a state in the 50 oil blocks being put up during 2026 oil bloc licencing rounds.

Among the requests put forward by the stakeholders under the auspices of the Nigerian Local Content Conference (NLCC) are that the president should consider granting oil producing states concessions to own stakes in oil blocks being offered for bids

They are also demanding for the seeding of 20 percent equity holding for host communities in the oil rich Nigeria Delta and other oil-bearing states.

Regarding the exploration of solid mineral deposits in the northern part of the country, they suggested that federal government should encourage youths’ participation through formation of cooperative groups.

Addressing journalists in Abuja, the Convener of NLCC and Africa Commodities Conference and Exhibition (ACCE), Michael Akueche said the move enable Nigerians to take advantage of the local content policy of the federal government which seeks to give consideration to indigenous operators greater opportunity to participate in the oil exploration and production business.

Akueche said that Nigeria has for years tried to fashion out ways of improving the lives of the people especially those directly suffering the environmental impact of oil and gas production in the Niger Delta area.

He said that President Bola Tinubu has the opportunity of raking millions of votes from the youth support base across the country if he grants the request which is intended to empower the vast population of Nigerians and give them sense of belonging.

Akueche cited data from the National Bureau of Statistics (NBS), which shows that about 63 percent of Nigerians, representing about 133 million people, are living in multidimensional poverty. He said oil-producing states are not exempt from this reality.

He said the engagement is anchored on social justice and economic prosperity for all, drawing reference from Psalm 82:2–4.

He further noted that similar exclusion patterns exist in the solid minerals sector, where local professionals, engineers, geologists and artisanal miners remain outside structured ownership frameworks despite operating in resource-rich areas.

He said:  “the incorporation of the larger numbers of the Nigerian people in the ownership of oil and gas assets will culminate in mitigating this widespread extreme and abject poverty amongst Nigerian population”.

As one of the stakeholders pushing for reforms in upstream petroleum governance and access to strategic assets, Akueche, who is also the founder of Mica Equity Allocation Limited, called on President Bola Ahmed Tinubu to ensure that oil-producing communities and youths are deliberately included in future oil block licensing rounds and marginal field allocations.

Akueche said the persistent agitation in the Niger Delta is tied to the technical and structural exclusion of host communities from participation in ownership and decision-making within the oil and gas value chain.

He said the issue goes beyond revenue sharing to access and equity in upstream opportunities.

Referring to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) licensing round advertised on 1st December, 2025, which listed 50 oil blocks for competitive bidding, Akueche said that while international investors are actively positioning for the assets, indigenous communities in producing regions remain largely unorganised for structured participation.

He described this as a recurring gap in Nigeria’s extractive governance framework, where communities bearing the impact of extraction are often excluded from the commercial and technical structures that define ownership.