OPL 245: How Tinubu’s Economic Diplomacy Ended Disputes, Targets $41b, 200,000 Jobs, in 25 Years

Nigeria now stands to attract over $41b contributions to the country’s Gross Domestic Product (GDP), with over 200,000 jobs in the next 25 years, according to industry experts, following President Bola Tinubu’s successful diplomacy, that led to resolution of the protracted legal disputes over Oil Prospecting Licence OPL 245.

This is as Lateef Fagbemi, Attorney-General of the Federation and Minister of Justice, on Sunday also declared that resolving the longstanding dispute over OPL 245 will reposition the economy and strengthen the country’s fiscal muscle.

The OPL 245, with an estimated 9 billion barrels deposit in the deep off-shore waters, had remained inactive following the dispute, until President Bola Tinubu directed the Ministry of Justice to resolve the dispute ” amicably”

BusinessDay gathered that the agreement agreement involves “breaking the block into four new assets to be operated by Eni and Shell and will turn the 30-year-old, contentious asset into a productive source of national revenue.

Fagbemi, while speaking after signing the legal agreement that brought the dispute to an end in Abuja, described the development as a milestone in repositioning Nigeria’s economic landscape.

The resolution has been described as a major achievement of the Tinubu’s economic diplomacy, indicating that the government under Tinubu is ready to uphold the rule of law and protect investments and investors.

With the resolution of the dispute, Nigeria is expected to boost Oil production and revenue, as it will allow for the development of the Zabazaba–Etan deepwater project, expected to add approximately 150,000 barrels per day to Nigeria’s oil production capacity.

The project is projected to potentially contribute billions to Nigeria’s GDP, with studies suggesting a cumulative increase of up to $41 billion over 25 years, “through taxes and, in some scenarios, back-in rights estimated to be worth over $400 million.

BusinessDay gathered further that the federal government reached had the settlement with Eni and Nigerian Agip Exploration Limited (NAEL), effectively ending the protracted dispute over OPL 245.

Fagbemi emphasised that resolving the dispute over OPL 245 will recalibrate the national economy and bolster the federal government’s fiscal position.

According to him, early in the administration, President Tinubu directed that all disputes over the oil block be resolved amicably in the best interests of the Nigerian people. Related News

“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.”

The Attorney-General explained 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 responsible partner in global business.

He further 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 noted 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.