Nigerian President Bola Tinubu announced Tuesday that Exxon Mobil Corp’s $1.28 billion deal to sell its Nigerian onshore assets to Seplat Energy will receive ministerial approval within days, following regulatory clearance.
The deal, first announced in 2022, has been closely watched by investors and analysts as a potential bellwether for similar transactions in Nigeria’s oil sector.
“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator,” Tinubu said in a televised broadcast marking Nigeria’s 64th independence anniversary.
The Nigerian Upstream Petroleum Regulatory Commission has not yet publicly announced its approval of the deal.
This development comes as Nigeria, Africa’s largest oil producer, struggles to increase its oil output due to theft and pipeline vandalism in the Niger Delta. These challenges have prompted companies like Exxon and Shell to focus on deepwater projects for expansion.
Last week, the presidency revealed that Exxon had proposed a $10 billion investment in offshore oil operations as part of a new investment push in Nigeria.
Tinubu emphasized his government’s commitment to facilitating foreign investment while maintaining regulatory standards. “We are committed to make it easy for investors to come and go while upholding the country’s regulatory processes,” he stated.
The president also highlighted that Nigeria had attracted over $30 billion in foreign direct investments since he took office last year. However, his economic reforms, including currency devaluation and subsidy cuts, have faced criticism for exacerbating the cost of living crisis.
To further boost investor confidence, Tinubu promised additional fiscal reforms, including tax reductions for businesses.
As Nigeria seeks to revitalize its oil sector and broader economy, the approval of the Exxon-Seplat deal could signal a new phase of foreign investment and asset transfers in the country’s crucial energy industry.
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