OPL 245 deal to strengthen economy, fiscal planning — Fagbemi

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said resolving the dispute over Oil Prospecting Licence (OPL) 245 will reposition Nigeria’s economy and strengthen the country’s fiscal capacity. According to a statement issued on Sunday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Fagbemi spoke after the signing […]

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said resolving the dispute over Oil Prospecting Licence (OPL) 245 will reposition Nigeria’s economy and strengthen the country’s fiscal capacity.

According to a statement issued on Sunday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Fagbemi spoke after the signing of the legal agreement that brought the dispute to an end in Abuja.

On March 5, the Presidency announced the successful conclusion of a settlement agreement between the Federal Government, Eni, and Nigerian Agip Exploration Limited (NAEL).

The attorney-general said President Bola Tinubu’s visionary leadership made the breakthrough possible, describing the development as a milestone in repositioning Nigeria’s economic landscape.

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“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” he said.

Fagbemi noted that resolving the dispute would recalibrate the national economy and strengthen the Federal Government’s fiscal position.

He said the president had, early in his administration, directed that all disputes over the oil block be resolved amicably in the best interests of Nigerians.

“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute. The agreement demonstrates Nigeria’s commitment to transparency, accountability and the rule of law,” he said.

The minister explained that the settlement, which will culminate in a consent arbitral award, not only resolves a complex international dispute but also restores Nigeria’s credibility as a responsible partner in global business.

A consent arbitral award is a final and binding decision issued by an arbitrator that formally records a settlement agreement reached between the parties during arbitration.

Fagbemi said the agreement would deliver several strategic economic benefits, including the removal of legal and fiscal uncertainties that previously hindered the development of the oil block.

“This development will pave the way for large-scale investments, stimulate job creation and reinforce Nigeria’s position as a leading energy producer in Africa,” he said.

He added that projected revenues from the asset could now be incorporated into the country’s medium-term fiscal framework, supporting budget stability, long-term economic planning and debt sustainability.

Fagbemi also said resolving the dispute through negotiation rather than prolonged arbitration underscores Nigeria’s commitment to alternative dispute resolution and strengthens its credibility in international commercial and arbitration circles.

“This settlement sends a clear signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” he added.

The attorney-general commended the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company (NNPC) Limited, the Economic and Financial Crimes Commission (EFCC), and international partners such as Eni and Shell for their roles in resolving the dispute.