FG, Eni Seal Settlement on OPL 245 Dispute — Fagbemi Says Deal Will Boost Nigeria’s Economy
Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said the resolution of the 15-year-old dispute over Oil Prospecting Licence (OPL) 245 will reposition Nigeria’s economy and strengthen the country’s fiscal outlook.
Fagbemi also praised the visionary leadership of President Bola Tinubu, which he said made the breakthrough possible.
Speaking at the weekend in Abuja after the signing of the legal agreement that brought the long-running dispute to an end, the Justice Minister described the development as a major milestone in repositioning Nigeria’s economic landscape.
“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 reached the settlement with Eni and Nigerian Agip Exploration Limited (NAEL), effectively ending the protracted dispute over the oil block.
Fagbemi explained that resolving the dispute would recalibrate the national economy and bolster the federal government’s fiscal position.
According to him, President Tinubu had earlier directed that all disputes surrounding the oil block be resolved amicably in the best interest of the Nigerian people.
“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute,” he said.
“The agreement demonstrates Nigeria’s commitment to transparency, accountability and the rule of law.”
The Attorney-General noted 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 reliable partner in global business.
He highlighted several strategic economic benefits expected from the resolution, 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.
Fagbemi also said the projected revenues from the asset could now be incorporated into Nigeria’s medium-term fiscal framework, thereby supporting budget stability, long-term economic planning and debt sustainability.
He added that resolving the dispute through negotiation rather than prolonged arbitration underscores Nigeria’s commitment to alternative dispute resolution and strengthens its credibility in international commercial 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 said.
The Attorney-General commended the institutions and stakeholders that contributed to the successful resolution, including the Ministry of Petroleum Resources, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPC Ltd.), the Economic and Financial Crimes Commission (EFCC) and international partners such as Eni and Shell.
Fagbemi said the settlement represents the triumph of dialogue over conflict and national interest over narrow considerations.
“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 added.
