…ExxonMobil/Seplat Divestment Deal To Receive Ministerial Approval
…FG Clears Inherited Forex $7bn Debt, N30tn Ways And Means Debt
Nigeria has in the last year, attracted more than $30bn Foreign Direct Investments into the country, thanks to the various reforms of the Bola Tinubu’s administration.
This was revealed by the president while delivering his 64th Independence Day anniversary speech on Tuesday.
Tinubu also explained that his administration was committed to free enterprise, free entry and free exit in investments.
He said, “Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion in the last year.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes.
“This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively.”
As such, President Tinubu said the ExxonMobil/Seplat divestment will receive ministerial approval in a matter of days.
He said the deal has been concluded by the regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in line with the Petroleum Industry Act (PIA).
“This was done in the same manner as other qualified divestments approved in the sector. The move will create vibrancy and increase oil and gas production, positively impacting our economy.”
The deal between Exxon Mobil Corporation and Seplat involved the takeover of ExxonMobil Nigeria’s offshore shallow water operations.
However, the Nigerian National Petroleum Company Limited (NNPCL) decided to invoke its Right of First Refusal (RFR) regarding the sale of these assets.
In May 2022, the federal government declined to approve the transaction, citing overriding national interest among other reasons for its decision.
President Bola Tinubu later met with ExxonMobil president Liam Mallon and other executives, assuring them of a quick resolution of the agreement between ExxonMobil and Seplat.
The president also spoke to the Central Bank of Nigeria’s monetary policies, saying they have brought about stability in the foreign exchange market and the economy.
He said, “The more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our foreign exchange market.
“We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion. We have cleared the ways and means debt of over N30 trillion.
“We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills.”
“We are moving ahead with our fiscal policy reforms”, Tinubu said, adding that there would be more job creation in the coming months.
“We are moving ahead with our fiscal policy reforms. To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.
“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law,” he said.
