President Bola Tinubu has announced that his government will approve Exxon Mobil Corp.’s sale of its oil and gas assets to Seplat Energy Plc within days.
The approval will mark the end of a prolonged legal and regulatory impasse that has delayed the $1.3 billion transaction for more than two years.
Speaking during his Independence Day address, President Tinubu emphasized that the decision would boost Nigeria’s oil production and positively impact the country’s economy.
“This divestment will receive ministerial approval in a matter of days. It will increase oil and gas production, positively impacting our economy,” he said.
The sale of Exxon Mobil’s assets to Seplat Energy, a leading Nigerian energy supplier, is expected to almost quadruple Seplat’s oil output, from its current production to over 130,000 barrels per day.
This comes at a time when Nigeria, Africa’s largest oil producer, is grappling with the consequences of underinvestment in its oil industry, a sector that remains critical to the nation’s economic growth and government revenue.
Nigeria has faced persistent challenges in meeting its OPEC production quotas due to a combination of underinvestment, infrastructure issues, and security concerns in oil-producing regions.
In August, the country produced 1.48 million barrels of crude per day, slightly below its OPEC target of 1.5 million barrels, according to data from Bloomberg.
President Tinubu’s government has made boosting oil production a priority, aiming to attract investment and revive the sector, which has been the backbone of Nigeria’s economy.
Vice President Kashim Shettima recently revealed that Exxon Mobil is also considering investing up to $10 billion in the country’s offshore oil industry in the coming years, a signal of renewed confidence in Nigeria’s energy sector.
The approval of the Seplat-Exxon transaction will bring to a close a two-year standoff that had stalled the conclusion of the deal.
In June, Nigeria’s state oil company withdrew its legal challenge that had previously blocked the sale, paving the way for ministerial approval.
President Tinubu reaffirmed his administration’s commitment to fostering a more open and competitive investment environment.
“Our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes,” he said.
Since assuming office in May 2023, Tinubu’s government has embarked on a series of economic reforms aimed at attracting foreign direct investment and stabilizing the country’s macroeconomic environment.
According to the president, these reforms have already attracted over $30 billion in foreign direct investment.
“Since June 2023, the more disciplined approach adopted by the central bank to monetary policy management has ensured stability and predictability in the foreign exchange market,” President Tinubu stated during his speech.
The president noted that the upcoming Economic Stabilization Bills, once passed into law, will further improve Nigeria’s business environment and stimulate investment, while also easing the tax burden on businesses.
These reforms are seen as a critical step in bolstering investor confidence and driving economic growth.
