Lateef Fagbemi, the attorney-general of the federation and minister of justice, says resolving the dispute over oil prospecting licence (OPL) 245 will reposition Nigeria’s economy and strengthen the country’s fiscal muscle.
According to a statement on Sunday by Bayo Onanuga, special adviser to the president on information and strategy, Fagbemi spoke after the signing of the legal agreement that brought the dispute to an end in Abuja.
On March 5, the presidency announced the successful conclusion of a settlement agreement between the federal government, Eni, and Nigerian Agip Exploration Limited (NAEL).
The attorney-general said President Bola Tinubu’s visionary leadership enabled the breakthrough.
He also described the development as a 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 minister said resolving the dispute will recalibrate the national economy and bolster the federal government’s fiscal position.
According to Fagbemi, the president had early in his administration, directed that all disputes over the oil block be resolved amicably in the best interests of Nigerians.
“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute. The agreement demonstrates Nigeria’s commitment to transparency, accountability, and the rule of law,” he said.
The minister said 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 responsible partner in global business.
A consent arbitral award is a final, binding decision issued by an arbitrator that formally records a settlement agreement reached between parties during arbitration.
‘SETTLEMENT WILL END FISCAL UNCERTAINTIES HINDERING OIL BLOCK DEVELOPMENT’
Fagbemi said the agreement will result in several strategic economic benefits, such as 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.
The attorney-general added that projected revenues from the asset could now be included in the country’s medium-term fiscal framework, thereby supporting budget stability, long-term economic planning, and debt sustainability.
Also, Fagbemi said resolving the dispute through negotiated settlement rather than prolonged arbitration underscores Nigeria’s commitment to alternative dispute resolution and enhances the country’s credibility 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 added.
Fagbemi commended the ministry of petroleum resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company (NNPC) Limited, the Economic and Financial Crimes Commission (EFCC), and international partners such as Eni and Shell for their contribution to the resolution.
The minister said the resolution represents national interest over narrow considerations, and triumph of dialogue over conflict.
“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,” Fagbemi said.
On Saturday, Bayo Ojulari, group chief executive officer (GCEO) of the NNPC, said the settlement will pave way for Zabazaba–Etan project, unlocking 150,000 barrels per day (bpd).
Stay ahead with the latest updates!
Join The Podium Media on WhatsApp for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
Chat with Us on WhatsApp
