October 03, 2024 [Reuters]- Exxon Mobil Corp’s deal to sell its Nigerian onshore assets to Seplat Energy will be approved in days after getting clearance from the regulator, President Bola Tinubu said on Tuesday.

The $1.28 billion deal has been closely watched since it was first announced in 2022 with analysts saying it would also signal to investors that similar deals, such as Shell’s asset sale to Renaissance in January, are likely to get approval.

Tinubu, in a televised broadcast to mark Nigeria’s 64 years of independence, said his government was committed to make it easy for investors to come and go while upholding the country’s regulatory processes.

“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator,” Tinubu said.

The Nigerian Upstream Petroleum Regulatory Commission has not yet announced approving the deal.

Nigeria is struggling to raise output of oil, its biggest export earner, mainly due to theft of crude and pipeline vandalism in the Niger Delta, forcing companies like Exxon and Shell to look to deepwater projects for expansion.

The presidency announced last week that Exxon had proposed a $10 billion investment in offshore oil operations in a new investment push in Nigeria.

Tinubu said his government would continue with reforms to woo investors, adding that Nigeria had attracted foreign direct investments worth more than $30 billion since he came to office last year.

But his reforms, which include easing forex controls and devaluing the currency and cutting subsidies on fuel and electricity, have worsened a cost of living crisis and angered citizens.

Tinubu promised fiscal reforms, including reducing taxes on businesses, to make Nigeria more attractive to investors.

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