What resolution of 30-year OPL 245 dispute means for Nigeria – FG

The federal government has said the resolution of the long-running dispute over OPL 245 marks a significant turning point for Nigeria’s economy, the oil and gas sector, and the country’s reputation in the global investment community. The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said the settlement will unlock economic opportunities, attract […]

The federal government has said the resolution of the long-running dispute over OPL 245 marks a significant turning point for Nigeria’s economy, the oil and gas sector, and the country’s reputation in the global investment community.

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, said the settlement will unlock economic opportunities, attract investments and strengthen the federal government’s fiscal position.

According to him, the agreement reached with Eni and Nigerian Agip Exploration Limited effectively ends more than two decades of legal disputes and international arbitration surrounding the oil block.

Speaking after the signing of the legal agreement in Abuja, the Attorney-General described the development as a milestone that will reposition Nigeria’s economic landscape.

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Daily Trust reports that the dispute over OPL 245 has been one of the most controversial issues in Nigeria’s oil industry, involving multiple legal proceedings and arbitration cases across several jurisdictions.

According to Fagbemi in a statement issued yesterday by the Presidential spokesman, Bayo Onanuga, the settlement will culminate in a consent arbitral award, formally bringing closure to the dispute and removing the legal uncertainties that had prevented the oil block from being fully developed.

“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.

The federal government believes the resolution will have far-reaching economic implications.

By removing the legal obstacles that previously hindered the development of the asset, the government expects the oil block to attract large-scale investments and stimulate economic activity.

Fagbemi noted that development of the asset could generate employment opportunities, strengthen Nigeria’s oil production capacity and increase government revenue.

“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.

Another major benefit highlighted by the government is the potential improvement in Nigeria’s fiscal outlook.

According to the Attorney-General, the projected revenue from the oil block can now be included in Nigeria’s medium-term fiscal framework.

This, he said, will enhance budget stability, support long-term economic planning and improve the country’s debt sustainability outlook.

Fagbemi said resolving the dispute through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to transparency, fairness and the rule of law.

“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 said.

“With this agreement, Nigeria can now move forward with confidence, ensuring that the development of OPL 245 becomes a source of prosperity for the nation and future generations,” he said.