Nigeria Set To Approve ExxonMobil-Seplat Divestment Deal

The federal government has said, the divestment of ExxonMobil’s Nigerian assets to Seplat Energy is poised to receive ministerial approval within days.

In his independence day speech, president Bola Tinubu emphasised the government’s commitment to facilitating a smooth transition for the deal, which has been a focal point in Nigeria’s economic strategy.

“ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA,” Tinubu said.

The move will create vibrancy and increase oil and gas production, positively impacting the economy, said Tinubu.

He went further to say that the present administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes.

This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively.

He noted that, the more disciplined approach adopted by the Central Bank of Nigeria (CBN) to monetary policy management has ensured stability and predictability in our foreign exchange market.

“We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion.  We have cleared the ways and means debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills,” he stressed.

Tinubu also said the government is moving ahead with its fiscal policy reforms, stressing “To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.

“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law.”

The economy, he noted, is undergoing the necessary reforms and retooling to serve the country better and more sustainably. “If we do not correct the fiscal misalignments that led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable consequences. Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion in the last year,” he said.