OPL 245 Settlement Will Boost Nigeria’s Economy, Says AGF

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said the resolution of the long-standing dispute over Oil Prospecting Licence (OPL) 245 will strengthen Nigeria’s economy and improve the country’s fiscal outlook.

Fagbemi also commended President Bola Ahmed Tinubu for providing the leadership that made the settlement possible, noting that the President’s directive helped bring an end to the dispute that had lingered for more than two decades.

Speaking in Abuja after the signing of the agreement that resolved the dispute, the Attorney-General described the development as a major milestone for Nigeria’s oil and gas sector and the country’s broader economic prospects.

The Federal Government reached the settlement with Eni and Nigerian Agip Exploration Limited (NAEL), bringing closure to the prolonged legal battle and international arbitration over the oil block.

According to Fagbemi, the resolution will eliminate the legal and fiscal uncertainties that had previously hindered the development of the asset, paving the way for new investments and economic opportunities.

He explained that early in the current administration, President Tinubu directed that all outstanding disputes surrounding the oil block be resolved amicably in the best interest of the Nigerian people.

Fagbemi said the President’s clear vision and political will played a crucial role in ending the protracted dispute, adding that the agreement also reflects Nigeria’s commitment to transparency, accountability and respect for the rule of law.

The Attorney-General noted that the settlement, which will result in a Consent Arbitral Award, not only resolves a complex international dispute but also strengthens Nigeria’s reputation as a reliable partner in global business.

He added that the development would encourage large-scale investments in the oil and gas sector, stimulate job creation and reinforce Nigeria’s position as a major energy producer in Africa.

Fagbemi further explained that projected revenues from the oil block could now be integrated into the country’s medium-term fiscal framework, supporting budget stability, long-term economic planning and debt sustainability.

He also emphasised that resolving the matter through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to alternative dispute resolution and enhances the country’s credibility in international commercial and arbitration circles.

According to him, the agreement sends a strong signal to the global community that Nigeria is open for business and remains committed to fairness and respect for contractual obligations.

The Attorney-General also acknowledged the contributions of several institutions and stakeholders that played roles in resolving the dispute, including the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company Limited, the Economic and Financial Crimes Commission, and international partners such as Eni and Shell.

He said the settlement highlights the importance of dialogue in resolving complex disputes and reflects the prioritisation of Nigeria’s national interest.

Fagbemi added that the agreement will allow the country to move forward with the development of OPL 245, ensuring that the asset contributes meaningfully to national growth and prosperity.