Exxon Mobil's Nigerian Asset Sale to Seplat Energy Awaits Official Approval

Exxon Mobil Corp's $1.28 billion sale of Nigerian onshore assets to Seplat Energy is set to receive regulatory approval within days, according to President Bola Tinubu. The deal has been closely monitored since its announcement in 2022 and signifies Nigeria's commitment to facilitate investment while maintaining regulatory standards.

Exxon Mobil Corp's $1.28 billion deal to sell its Nigerian onshore assets to Seplat Energy is on the brink of approval. President Bola Tinubu announced that the transaction would receive ministerial clearance imminently, marking a significant milestone in Nigeria's investment landscape.

Since its announcement in 2022, the deal has garnered considerable attention. Analysts suggest that its approval could herald further investment opportunities, similar to Shell's asset sale to Renaissance earlier this year. Tinubu, in a speech commemorating Nigeria's 64th independence anniversary, reaffirmed his administration's dedication to investor-friendliness and regulatory transparency.

Nigeria's oil sector faces challenges like crude theft and pipeline vandalism, particularly affecting onshore output. Consequently, companies like Exxon are increasingly pivoting to offshore projects. The presidency recently disclosed Exxon's $10 billion proposal for offshore investments, underscoring their long-term commitment to Nigerian operations. Despite favorable investor reforms, Tinubu's economic measures have sparked domestic controversy, exacerbating the cost of living crisis. Nonetheless, the government promises continued reforms, including tax reductions, to bolster Nigeria's appeal as an investment destination.

(With inputs from agencies.)