Nigeria’s Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, says the federal government’s resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245 will strengthen the country’s economy and improve its fiscal outlook.
Fagbemi made the remarks in Abuja on Sunday after the signing of a legal agreement between the federal government and energy firms Eni and Nigerian Agip Exploration Limited (NAEL), effectively bringing an end to more than two decades of legal battles and international arbitration surrounding the controversial oil block.
According to the attorney-general, the settlement marks a significant milestone for Nigeria’s oil and gas sector.
“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” he said.
Fagbemi credited the breakthrough to the leadership of President Bola Ahmed Tinubu, noting that the president had directed early in his administration that disputes surrounding the oil block be resolved amicably in the interest of Nigerians.
“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute,” he said, adding that the agreement reflects Nigeria’s commitment to transparency, accountability and the rule of law.
The attorney-general explained that the settlement will culminate in a Consent Arbitral Award, resolving the complex international dispute and helping restore Nigeria’s credibility as a reliable partner in global business.
He said the resolution would remove longstanding legal and fiscal uncertainties that had stalled the development of the oil block.
According to him, the agreement is expected to pave the way for large-scale investments in the sector, stimulate job creation and reinforce Nigeria’s position as a leading energy producer in Africa.
Fagbemi also noted that projected revenues from the asset can now be incorporated into Nigeria’s medium-term fiscal framework, supporting budget stability, long-term economic planning and debt sustainability.
He added that settling the dispute through negotiation rather than prolonged arbitration demonstrates Nigeria’s commitment to alternative dispute resolution and strengthens the country’s credibility in international commercial 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 also commended several institutions and stakeholders involved in the process, including the Federal Ministry of Petroleum Resources, Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Company Limited and the Economic and Financial Crimes Commission.
International partners, including Shell and Eni, were also acknowledged for their roles in bringing the dispute to a close.
The attorney-general said the agreement represents the triumph of dialogue over prolonged conflict and allows Nigeria to move forward with the development of OPL 245 for the benefit of the country.
“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,” he said.