By Abuja, Nigeria
The Federal Government has said the resolution of the longstanding dispute over Oil Prospecting Licence 245 (OPL 245) will strengthen Nigeria’s economy and improve the country’s fiscal position.
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, made the remark in Abuja after the signing of a legal agreement that ended the dispute involving Italian energy company Eni and Nigerian Agip Exploration Limited.
Fagbemi said the breakthrough was made possible by the leadership of President Bola Ahmed Tinubu, who had directed early in his administration that the dispute over the oil block be resolved amicably in the interest of Nigerians.
According to him, the agreement marks a major milestone after more than two decades of legal battles and international arbitration over the lucrative offshore oil block.
“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” the Attorney-General said.
He explained that the settlement, which will culminate in a consent arbitral award, resolves a complex international dispute and restores Nigeria’s credibility as a reliable partner in global business.
Fagbemi noted that the resolution removes legal and fiscal uncertainties that had previously stalled the development of the oil block. He said the development is expected to attract large-scale investment, create jobs and reinforce Nigeria’s position as a major energy producer in Africa.
The minister also stated that projected revenues from the asset could now be incorporated into the country’s medium-term fiscal framework, helping to support budget stability, long-term economic planning and debt sustainability.
He added that resolving the dispute through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to alternative dispute resolution and strengthens the country’s 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,” Fagbemi said.
The Attorney-General also commended institutions that contributed to the resolution, including the Federal Ministry of Petroleum Resources, Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited, and the Economic and Financial Crimes Commission, as well as international partners such as Eni and Shell.
