$1.28b ExxonMobil-Seplat deal to secure approval in days, says Tinubu

President Bola Tinubu said the long-awaited ExxonMobil’s $1.28 billion divestment deal with Seplat Energy will receive ministerial approval within days.The President made this known during his Independence Day broadcast yesterday when he mentioned that in line with the Petroleum Industry Act (PIA), the transaction has been successfully concluded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to complete the divestment deal.

In February 2022, Seplat announced plans to acquire ExxonMobil’s 40 per cent stake in Mobil Producing Nigeria Unlimited (MPNU). However, in May 2022, NUPRC declined approval, citing overriding national interest and other considerations as reasons for its decision.

In July 2022, a lawsuit filed by the Nigerian National Petroleum Company (NNPC) prohibited ExxonMobil from finalising any divestment of its subsidiary, which holds four licences in Nigeria, claiming NNPC had the first right of refusal on the sale.

This legal action created significant barriers to the transaction. However, in June 2024, NNPC withdrew the lawsuit, allowing the sale to be finalised according to the guidelines set by the Petroleum Industry Act (PIA). President Tinubu, however, stressed that the NUPRC has approved the deal involving ExxonMobil’s sale of its onshore assets to Seplat Energy.

“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, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector,” he said.

Also, Tinubu during his broadcast mentioned that the country has paid back the inherited forex backlog of $7 billion, noting that the foreign reserves have been managed and kept at $37 billion.

He stressed that the debt service ratio has been reduced from 97 per cent to 68 per cent, noting that the nation’s ways and means a debt of over N30 trillion has been cleared.

The President revealed that the nation is expanding the adoption of the Presidential Initiative on compressed natural gas (CNG) for mass transit with private sector players.He said: “The FG is ready to assist the 36 states and Federal Capital Territory (FCT) in acquiring CNG buses for cheaper public transportation.

“Last week, the Federal Executive Council (FEC) approved establishing a local assembly plant for 2000 John Deere tractors, combine harvesters, disc riders, bottom plough and other farm equipment. The plant has a completion time of six months.”