Corruption Claims Over Shell Pipeline Threaten Nigeria’s Gas Reforms

A stalled 80 km gas pipeline from Sagamu to Ibadan was due in June 2026 but stopped by a state work order. Oyo State’s governor halted construction without clear public reason, despite federal licenses under the Petroleum Industry Act. The project was backed by over $100 million and granted exclusive distribution rights to NGML-NIPCO for 25 years. Now allegations suggest Shell may seek to bypass those rights by leveraging political connections. FCT Minister Nyesom Wike accused Governor Seyi Makinde and Shell of an “unholy alliance.” Neither Shell nor the state government has offered detailed responses, deepening the uncertainty. This dispute tests President Tinubu’s gas reforms and Nigeria’s regulatory framework. The outcome could shape the country’s ability to attract energy investments and uphold the rule of law in its gas sector.

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