The Federal Government yesterday in Abuja officially addressed the long-anticipated $2.4 billion divestment of Shell’s onshore assets in Nigeria, stressing that local ownership must translate to increased oil production and economic value for the nation.
Speaking at a meeting with the leadership of Renaissance Africa Energy Company, the new owners of Shell’s onshore portfolio, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, described the divestment as a landmark development for Nigeria’s energy sector.
“A few months ago, many doubted the possibility of divestments in Nigeria’s oil sector. But divestment is global best practice. Under President Bola Tinubu leadership, we cleared bottlenecks that had stalled these deals for years. Nigeria is now open for business,” Lokpobiri said.
“The minister, addressing the Renaissance team led by the Chief Executive Officer, Tony Attah, emphasised that Nigerian firms must demonstrate capacity beyond acquisition.
Lokpobiri said: “Shell and others had slowed investments prior to divestment. We expect to see production ramp up. Nigerians are watching, and we’re ready to support you to achieve higher output.
“Lokpobiri added that the success of Renaissance Africa will send a strong signal to the global investment community, noting that government would create a conducive environment for you to succeed. “You must show results. Idle oil wells must be activated. Partner with those who can boost output.
More production equals more revenue for Nigeria.”No African country matches Nigeria’s human capacity in this sector.
We’re now exporting our expertise across the continent, and Renaissance must lead this charge,” Lokpobiri said. In his remarks, Attah described the takeover from Shell as both historic and symbolic, noting “After over 60 years of Shell’s presence, it is no small feat to take over. But we’re not replacing Shell, we are Renaissance.
We’re proudly Nigerian and here for Nigeria,” he said.He stressed the importance of tackling energy poverty, linking it directly to Nigeria’s economic performance. “Over 600 million Africans still lack access to power. You cannot industrialise without energy security. We must shift the narrative from economic poverty to energy poverty,” the CEO said. The Renaissance team commended the government for facilitating the transaction and pledged to build on Shell’s legacy and do better with faster decision-making, more local value, and greater accountability.
