OPL 245: Fresh Lawsuit Contradicts Tinubu Administration Claims, Says Atiku Media Office

Malabu Oil’s Legal Challenge Exposes Ongoing OPL 245 Dispute, Raising Concerns Over Oil Sector Management

The long-running OPL 245 dispute has resurfaced, casting doubt on the Federal Government’s recent claims of a “final resolution.” Malabu Oil and Gas Limited has issued a pre-action notice through its counsel, R.O. Atabo, SAN, directly challenging the settlement announced by Attorney-General Lateef Fagbemi.

According to a statement released by the Atiku Media Office on March 22, the matter remains subject to multiple ongoing legal proceedings, including cases before the Supreme Court and Federal High Court, contradicting the government’s public position.

At the center of the controversy is the revelation that Malabu, a principal stakeholder with long-established interests in OPL 245, was neither consulted nor involved in the negotiation process that led to the “Resolution Agreement” reportedly signed at the Presidential Villa.

“A government that sidelines critical stakeholders, disregards pending judicial processes, and proceeds to celebrate a disputed agreement demonstrates not strength, but recklessness,” the statement read.

The OPL 245 block has been the subject of protracted legal battles for years, with substantial economic implications for Nigeria’s oil sector. Industry analysts estimate the block contains approximately 9 billion barrels of crude oil, potentially worth billions of dollars in revenue.

The Atiku Media Office characterized this development as part of a broader pattern in the Tinubu administration’s governance approach, suggesting a preference for “propaganda over substance” and “optics over legality.”

The statement also raised alarm over reports suggesting a planned sale of up to 30 percent of Nigeria’s Joint Venture assets under NNPC Limited. These assets represent a significant portion of Nigeria’s oil production infrastructure and remain crucial to the country’s revenue generation.

“These assets are not mere commercial instruments; they are strategic national holdings—the backbone of Nigeria’s revenue architecture,” the statement emphasized, calling on industry stakeholders including PENGASSAN and NUPENG to remain vigilant against potential non-transparent transactions.

Further concerns were raised regarding the relocation of NNPC Upstream Investment Management Services to Lagos at a reported annual rental cost exceeding ₦9 billion. This expenditure comes at a time when Nigeria’s debt servicing burden has more than doubled, rising from approximately ₦7 trillion in 2023 to about ₦16 trillion.

Adding to the controversy are unrefuted allegations that the Lagos property may be linked to interests associated with President Tinubu’s family, raising questions about potential conflicts of interest.

Energy sector analysts note that these developments come at a particularly challenging time for Nigeria’s oil industry, which has struggled with declining production, pipeline vandalism, and the ongoing global energy transition away from fossil fuels. The country’s oil output has remained below OPEC quotas for much of the past two years, further straining government revenues.

The Atiku Media Office statement connected these oil sector issues to broader governance challenges, including worsening security situations across the country and concerning economic indicators despite claims of increased government revenue.

“Despite claims of increased revenue, there is little evidence of corresponding improvements in infrastructure, healthcare, or education. Borrowing continues at an alarming pace, while public debt edges dangerously toward unsustainable levels,” the statement noted.

The controversy highlights the ongoing challenges in Nigeria’s attempt to reform its oil sector, which accounts for approximately 90% of the country’s foreign exchange earnings and remains vital to government finances despite diversification efforts.

Industry experts suggest that resolving the OPL 245 dispute transparently will be crucial for investor confidence in Nigeria’s oil and gas sector, which has seen declining foreign investment in recent years amid regulatory uncertainty and global shifts toward renewable energy.

As this legal challenge unfolds, it represents another chapter in one of Nigeria’s most complex and consequential oil sector disputes, with significant implications for the country’s energy future and economic stability.