OPL 245 settlement will strengthen Nigeria’s economy, says Fagbemi
The Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi (SAN), has said the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245 will reposition
- AGF lauds Tinubu’s leadership in resolving decades-long dispute
The Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi (SAN), has said the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245 will reposition Nigeria’s economy and strengthen the country’s fiscal capacity.
Fagbemi said this in Abuja after the signing of a legal agreement that ended the protracted dispute involving the oil block.
The minister described the development as a major milestone for Nigeria’s oil and gas sector.
He noted that the settlement reached between the Federal Government and international oil companies (IOCs), Eni and Nigerian Agip Exploration Limited (NAEL), effectively ended more than two decades of legal battles and international arbitration over the asset.
In a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the AGF said: “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 praised President Bola Ahmed Tinubu for providing the political will and leadership needed to resolve the dispute in the best interest of the country.
The AGF recalled that the President had, early in the administration, directed that all disputes on the oil block be resolved amicably to protect national interests.
“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute,” he said.
Fagbemi noted that the settlement demonstrated Nigeria’s commitment to transparency, accountability, and adherence to the rule of law in its dealings with global partners.
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He explained that the agreement, which will culminate in a Consent Arbitral Award, resolved a complex international dispute and restored Nigeria’s credibility as a reliable partner in global business.
According to him, the resolution will eliminate the legal and fiscal uncertainties that have 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,” Fagbemi said.
The AGF noted that projected revenues from the oil asset could now be incorporated into Nigeria’s medium-term fiscal framework, helping to strengthen budget stability, long-term economic planning and debt sustainability.
He stressed that resolving the dispute through negotiation rather than prolonged arbitration highlighted Nigeria’s commitment to alternative dispute resolution mechanisms and strengthened the country’s standing 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 said.
The AGF also praised key institutions and stakeholders that contributed to the successful resolution of the dispute. They include the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Company Limited (NNPCL), the Economic and Financial Crimes Commission (EFCC), as well as international partners, such as Eni and Shell.
Fagbemi described the agreement as a 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.
