OPL 245 Settlement Will Reposition Nigeria’s Economy – AGF
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245 will strengthen Nigeria’s fiscal position and reposition the country’s economy.
Fagbemi made the remarks on Sunday in Abuja after the signing of a legal agreement between the Federal Government and energy firms Eni and Nigerian Agip Exploration Limited (NAEL), bringing an end to a protracted dispute that had lasted more than two decades.
He described the settlement as a major milestone for Nigeria’s oil and gas sector, noting that it removes longstanding legal and fiscal uncertainties that had hindered the development of the oil block.
According to him, the breakthrough was made possible by the decisive leadership of President Bola Ahmed Tinubu, who directed early in his administration that all disputes relating to the oil block be resolved amicably in the best interests of Nigerians.
“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” Fagbemi said.
He explained that the settlement will culminate in a Consent Arbitral Award, effectively bringing closure to one of the most complex international disputes involving Nigeria’s petroleum industry.
The Attorney-General said resolving the dispute would recalibrate the national economy and strengthen the Federal Government’s fiscal outlook by unlocking new investment opportunities tied to the oil block.
“This development will pave the way for large-scale investments, stimulate job creation, and reinforce Nigeria’s position as a leading energy producer in Africa,” he stated.
Fagbemi also noted that anticipated revenues from the asset could now be incorporated into the country’s medium-term fiscal framework, which would help stabilise budgets, support long-term economic planning, and enhance debt sustainability.
He added that the decision to resolve the matter through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to transparency, accountability and the rule of law.
According to him, the outcome also restores Nigeria’s credibility as a responsible partner in global business and strengthens its reputation in international commercial and arbitration circles.
“This settlement sends a clear signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” he said.
Fagbemi commended key institutions that contributed to the resolution of the dispute, including the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company Limited, and the Economic and Financial Crimes Commission, as well as international partners involved in the agreement.
He emphasised that the settlement represents the triumph of dialogue over conflict and national interest over narrow considerations.
“With this agreement, Nigeria can now move forward with confidence, ensuring that the development of OPL 245 becomes a source of prosperity for the nation and future generations,” the minister said.
The statement announcing the agreement was issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday.