OPL 245 Settlement Will Boost Economy, Strengthen Fiscal Position – AGF Fagbemi

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said the resolution of the long-running dispute over OPL 245 will significantly reposition Nigeria’s economy and strengthen the country’s fiscal capacity.

Fagbemi made the remarks in Abuja shortly after the signing of a legal agreement ending decades of disputes surrounding the oil block. He credited the breakthrough to the leadership of Bola Ahmed Tinubu, stating that the president’s directive to resolve the matter amicably helped bring the protracted case to a close.

According to the Attorney-General, the settlement reached between the Federal Government and energy companies Eni and Nigerian Agip Exploration Limited marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration.

He explained that the agreement, which will culminate in a Consent Arbitral Award, eliminates major legal and fiscal uncertainties that had previously stalled the development of the oil block.

“The resolution of the OPL 245 dispute will recalibrate the national economy and strengthen the Federal Government’s fiscal position,” Fagbemi said. “It restores confidence in Nigeria’s legal and regulatory systems while opening the door for renewed investment in the energy sector.”

The Attorney-General noted that early in the administration, President Tinubu had directed relevant agencies to pursue an amicable resolution of all disputes relating to the oil asset in the best interest of Nigerians.

Fagbemi added that the settlement will unlock significant economic benefits, including fresh investments, job creation, and increased government revenues from the development of the oil block.

He also pointed out that projected revenues from OPL 245 can now be incorporated into Nigeria’s medium-term fiscal framework, which will support budget stability, long-term economic planning, and debt sustainability.

Beyond the financial gains, Fagbemi said the decision to resolve the matter through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to transparency, accountability, and alternative dispute resolution.

“This settlement sends a strong signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” he said.

The Attorney-General commended several institutions that played key roles in achieving the resolution, including the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited, and the Economic and Financial Crimes Commission.

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He also acknowledged the cooperation of international partners such as Eni and Shell in bringing the long-standing dispute to an end.

Fagbemi emphasised that the agreement represents the triumph of dialogue and national interest, expressing optimism that the development of OPL 245 will become a major source of economic growth and prosperity for Nigeria in the years ahead.