ExxonMobil-Seplat Divestment to Get Ministerial Approval Soon

By Adedapo Adesanya

President Bola Tinubu has assured that the ExxonMobil-Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the industry regulator in line with the Petroleum Industry Act (PIA).

He disclosed this on October 1, 2024, during the nationwide Independence Day broadcast, monitored by Business Post.

The President added that this 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 the economy.

“The 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. This was done in the same manner as other qualified divestments approved in the sector. The move will create vibrancy and increase oil and gas production, positively impacting our economy,” he said.

He pleaded with Nigerians to bear with his administration, noting that the economy is undergoing necessary reforms and retooling for sustainability under his leadership.

He stated that if stakeholders do not correct the fiscal misalignments that led to the current economic downturn, Nigeria will face an uncertain future with unimaginable consequences.

President Tinubu also explained that, based on ongoing reforms, the country attracted foreign direct investments worth more than $30 billion in the last year.

He stressed that the administration is committed to free enterprise, allowing free entry and exit in investments while maintaining the sanctity and efficacy of regulatory processes.

“The economy is undergoing the necessary reforms and retooling to serve us better and more sustainably. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing fortunes positively.”

He also lauded the monetary approach adopted by the Central Bank of Nigeria (CBN), which he claimed has ensured stability and predictability in the 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 a debt of over N30 trillion. We have reduced the debt service ratio from 97 percent to 68 percent.

“Despite all these, we have managed to keep our foreign reserves at $37 billion. We continue to meet all our obligations and pay our bills.

“We are moving ahead with our fiscal policy reforms,” he added.

He also noted that to stimulate the country’s productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilization Bills, which will now be transmitted to the National Assembly.

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

“As part of our efforts to re-engineer our political economy, we are resolute in our determination to implement the Supreme Court judgment on the financial autonomy of local governments,” he said.