Victor EzejaNigeria’s President Bola Tinubu has assured that the said ongoing $1.28 billion divestment deal between ExxonMobil and Nigeria’s Seplat Energy, will receive “ministerial approval in a matter of days,” having been concluded by the regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in line with the Petroleum Industry Act, (PIA).
The president made this known on Tuesday morning during his nationwide broadcast to mark the country’s 64th independence anniversary.
Join our WhatsApp ChannelTinubu explained that his administration is committed to promoting a free-market economy, allowing free entry and exit by investors, while ensuring that strong regulatory processes are maintained.
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The president stated that this principle guides the divestment transactions in the country’s upstream petroleum sector, as his administration remains committed to ensuring that they result in a positive change.
Tinubu clarified that the ExxonMobil and Seplat Energy divestment deal was done in the same manner as other qualified divestments approved in the sector, adding that “The move will create vibrancy and increase oil and gas production, positively impacting our economy.”
Prime Business Africa recalls that President Tinubu had in May, told ExxonMobil that the federal government was committed to resolving divestment issues faced by the International Oil Company and Seplat Energy.
Subsequently, Nigeria’s upstream petroleum regulator signalled that the deal will soon close.
Earlier, the Nigeria National Petroleum Company Limited (NNPCL) and ExxonMobil had a disagreement surrounding the sale of the latter’s assets to Seplat Energy.
The national oil company had taken a legal action to stop the divestment deal.
However, following Tinubu’s announcement of his intervention, NNPCL applied to the FCT High Court seeking discontinuation of the case.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
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