Concerns over transparency and due process have emerged following revelations that the Nigerian government, under President Bola Tinubu, awarded lucrative oil blocks to a firm registered just eight days before the bidding process began. The decision has raised questions about adherence to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) licensing guidelines.
Panout Oil & Gas Ltd., a newly incorporated company, secured three oil blocks in December 2024, outbidding established industry players such as TotalEnergies SE and Chevron Corp. The firm, owned by Saheed Alao, CEO of Lagos-based IT company Blueprint Business Technologies Ltd., was registered on May 6, 2024—mere days before the bidding round was announced on May 8, 2024.
Industry experts and stakeholders have expressed concerns over the selection process, questioning how a company with no prior experience in the oil sector managed to secure such high-value assets. The NUPRC, however, defended the process, stating that firms with clear development plans were prioritized over those seeking to hold assets for speculation.
Given President Tinubu’s dual role as Nigeria’s leader and Petroleum Minister, critics argue that the allocation raises serious concerns about favoritism and transparency in the oil sector. Calls for accountability and a thorough review of the bidding process have intensified, with industry observers urging the government to uphold fairness and integrity in future licensing rounds.