The federal government says the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245 will strengthen Nigeria’s fiscal position and reposition the country’s economy.
Lateef Fagbemi, attorney-general of the federation (AGF) and minister of justice, said this after the signing of a legal agreement in Abuja that brings the dispute to an end.
Fagbemi said the agreement, reached between the federal government, Eni, and Nigerian Agip Exploration Limited (NAEL), concludes more than two decades of legal battles and international arbitration over the oil block.
He credited President Bola Tinubu’s leadership for providing the political will needed to resolve the dispute.
According to the AGF, Tinubu had directed early in his administration that all disputes surrounding the oil block be resolved amicably in the best interests of Nigerians.
“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” Fagbemi said.
He added that resolving the dispute would remove legal and fiscal uncertainties that had previously hindered the development of the oil asset.
Fagbemi said the settlement, which will culminate in a consent arbitral award, would restore Nigeria’s credibility as a responsible partner in global business.
He said the development is expected to pave the way for large-scale investments, stimulate job creation and reinforce Nigeria’s position as a leading energy producer in Africa.
The AGF also noted that projected revenues from the asset can now be incorporated into the country’s medium-term fiscal framework, supporting budget stability, long-term economic planning and debt sustainability.
He said resolving the dispute through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to alternative dispute resolution and strengthens the country’s reputation in international commercial and arbitration circles.
Fagbemi commended institutions that contributed to the settlement, including the ministry of petroleum resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Company (NNPC) Limited, the Economic and Financial Crimes Commission (EFCC), and international partners such as Eni and Shell.
He added that the agreement would allow Nigeria to move forward with the development of OPL 245 and ensure the asset contributes to national prosperity.