26th September, 2024
Vice President Kashim Shettima has warmly welcomed ExxonMobil’s proposed $10 billion investment in Nigeria’s deep-water oil sector, emphasizing that it underscores the administration’s economic reforms and investment-friendly policies.
This announcement coincides with international maritime giant DP World’s plans to develop a multibillion-dollar port project in Nigeria.
During a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly in New York, Shettima stated, “This potential investment by ExxonMobil aligns perfectly with President Bola Ahmed Tinubu’s vision for a more investment-friendly Nigeria. We are committed to fostering an enabling environment for such transformative projects.”
He elaborated on the administration’s efforts to improve the business climate, saying, “The Renewed Hope Agenda prioritizes ease of doing business. We have launched comprehensive reforms to streamline bureaucratic processes, enhance transparency, and offer fiscal incentives that make Nigeria an attractive destination for global investors.”
The Vice President highlighted key policy changes, including the unification of the exchange rate, the removal of fuel subsidies, and the implementation of tax reforms.
“These decisions, while challenging in the short term, aim to establish a stable and predictable business environment in the long run,” he noted.
Addressing the oil and gas sector’s specific concerns, Shettima added, “We are actively revising the fiscal framework for deep-water operations to balance attracting investments with ensuring fair returns for the Nigerian people. ExxonMobil’s potential investment signals that we are moving in the right direction.”
“As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning. Our doors are open to all investors across various sectors. The message is clear: Nigeria is open for business, and the Tinubu administration is your partner in progress.”
Earlier, Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s commitment to the country.
“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” he stated.
Central to ExxonMobil’s new strategy is the Owo project, a significant subsea tie-back representing a $10 billion investment. “We are working closely with the President’s office and the Special Adviser to secure favorable fiscal arrangements to facilitate this significant investment,” Harris explained.
Despite plans to divest its onshore assets to Seplat Energy, ExxonMobil intends to invest $1 billion annually in maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the coming years.
Simultaneously, DP World has announced its intent to develop a multibillion-dollar port project in Nigeria. Sultan Ahmed bin Sulayem, Group Chairman & CEO of DP World, shared these plans during a courtesy visit to VP Shettima on the sidelines of the UN General Assembly.
This proposal directly responds to President Tinubu’s aggressive investment drive and efforts to enhance the ease of doing business in Nigeria.
Sulayem remarked, “Nigeria is a massive market with immense untapped potential. With our supply chain of over 2,500 points of sale to Nigeria, we will bring in the necessary capital, human, and material resources to achieve this goal.”
Expressing confidence in the Nigerian economy, Sulayem cited the country’s vast import and export market as a key factor in their decision to invest.
Shettima welcomed the initiative, stating, “This proposal is a testament to President Tinubu’s commitment to attracting foreign investments to Nigeria.”
He reiterated the administration’s ongoing efforts to cultivate a more investor-friendly environment.
“Nigeria is open to investors from around the world. We are witnessing a total rejuvenation of economic policies aimed at fostering a free, fair, and sustainable market,” the Vice President declared.
He assured investors of the government’s unwavering support and the administration’s dedication to facilitating foreign investment and economic growth.
Others in attendance at the meetings included the Minister of Industry, Trade, and Investment, Doris Nkiruka Uzoka-Anite; the Minister of Arts, Culture, and Creative Economy, Hannatu Musa Musawa; and the Minister of Youth Development, Dr. Jamila Ibrahim Bio, among others.
