NIGERIA is poised to approve ExxonMobil’s $1.28bn deal to sell its onshore assets to Seplat Energy in the coming days, following regulatory clearance, President Bola Tinubu announced on Tuesday. This move is expected to further signal Nigeria’s openness to investment in its oil sector.
The deal, initially announced in 2022, has been closely watched by industry analysts, with many viewing it as a potential catalyst for similar transactions, such as Shell’s asset sale to Renaissance earlier this year. Approval of ExxonMobil’s divestment could encourage more confidence in the Nigerian market among global investors.
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Speaking during a televised broadcast marking Nigeria’s 64th Independence Day, Tinubu expressed the government’s commitment to simplifying the investment process while maintaining regulatory integrity. ‘The ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator,’ Tinubu stated. The Nigerian Upstream Petroleum Regulatory Commission has not yet formally confirmed this approval.
Nigeria, Africa’s largest oil producer, has been struggling to boost oil output, hampered by rampant crude theft and pipeline vandalism in the Niger Delta. These challenges have driven major oil companies, including ExxonMobil and Shell, to focus on offshore projects to sustain production growth.
In an additional boost to the country’s energy sector, Tinubu announced that ExxonMobil had proposed a new $10bn investment in offshore oil operations. Tinubu reiterated his government’s dedication to reforms aimed at attracting investors, highlighting the over $30 billion in foreign direct investment Nigeria has secured since he assumed office last year.
The president acknowledged that some of his economic reforms—including the easing of foreign exchange controls, devaluation of the currency, and subsidy cuts on fuel and electricity—had exacerbated the cost of living crisis for citizens. However, Tinubu promised to introduce fiscal changes, such as reducing business taxes, to enhance Nigeria’s appeal to investors.
The approval of the ExxonMobil-Seplat deal is seen as part of Nigeria’s broader efforts to maintain its status as a key player in global energy, especially as oil remains the nation’s primary export and a crucial contributor to the economy.
