Exxon-Seplat $1.28 billion deal approval imminent, Nigeria president says

Bola Tinubu, the President of Nigeria, said that Exxon Mobil Corp.'s sale of its Nigerian assets to Seplat Energy would be approved within days once it received approval from the regulator.

Analysts say that the $1.28 billion transaction has been closely monitored since it was announced in 2022. It will also signal to investors similar deals such as Shell's sale of assets to Renaissance in January.

In a television broadcast marking the 64th anniversary of Nigeria's independence, Tinubu said that his government is committed to making it easier for investors to come to and leave while maintaining the country's regulatory process.

Tinubu stated that the ExxonMobil Seplat sale will be approved by the minister in just a few days after the regulator has completed its work.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has not yet approved the deal.

Nigeria struggles to increase its oil production, which is the country's biggest export. This is primarily due to pipeline vandalism and theft in the Niger Delta. Companies like Exxon are forced to expand their deepwater projects.

Last week, the presidency announced that Exxon proposed to invest $10 billion in offshore oil operations as part of a new investment drive in Nigeria.

Tinubu stated that his government will continue to reform to attract investors. He added that Nigeria has attracted more than $30 billion in foreign direct investment since he took office last year.

His reforms have worsened the cost of living crisis, and enraged citizens.

Tinubu pledged fiscal reforms including the reduction of taxes on business to make Nigeria more appealing to investors. (Written by MacDonald Dzirutwe and edited by Ed Osmond).

(source: Reuters)