Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi, says the resolution of the dispute surrounding oil prospecting licence (OPL) 245 will help reposition Nigeria’s economy and enhance the country’s fiscal strength.

A statement issued on Sunday by Presidential Spokeman, Mr Bayo Onanuga, said the minister spoke after the signing of the legal agreement that formally settled the long-running dispute in Abuja.

Earlier, on March 5, the presidency announced that the federal government had successfully concluded a settlement with Eni and Nigerian Agip Exploration Limited over the controversial oil block.

Mr Fagbemi attributed the breakthrough to the leadership of Bola Tinubu, noting that the president’s direction was instrumental in ending the protracted dispute.

He described the agreement as a significant milestone that could reshape Nigeria’s economic outlook and unlock value within the country’s oil and gas industry. According to the attorney-general, the settlement brings closure to more than two decades of litigation and international arbitration linked to the oil block.

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Fagbemi added that the resolution will help recalibrate Nigeria’s economic trajectory while strengthening the federal government’s fiscal position. He said President Tinubu had, early in his administration, instructed that all outstanding disputes over the oil block be resolved amicably in the interest of Nigerians.

“The clear vision and strong commitment of President Tinubu provided the political will needed to bring an end to this long-standing dispute. The agreement also reflects Nigeria’s dedication to transparency, accountability and the rule of law,” he said.

Mr Fagbemi explained that the settlement will culminate in a consent arbitral award, a final and binding ruling by an arbitrator that formally recognises a settlement reached between disputing parties during arbitration proceedings.

He said the development not only resolves a complex international dispute but also restores Nigeria’s reputation as a credible and reliable partner in global commerce.

Settlement to remove fiscal uncertainties

The minister noted that the agreement would deliver several strategic economic benefits, including eliminating legal and fiscal uncertainties that had stalled the development of the oil asset.

According to him, the resolution is expected to unlock large-scale investment, generate employment opportunities and further strengthen Nigeria’s position as one of Africa’s leading energy producers.

Fagbemi added that expected revenue from the asset can now be incorporated into the country’s medium-term fiscal framework, thereby supporting budget stability, long-term economic planning and debt sustainability.

He also said opting for a negotiated settlement rather than extended arbitration reflects Nigeria’s growing commitment to alternative dispute resolution and improves the country’s credibility in global arbitration and commercial circles.

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

Fagbemi commended the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Ministry of Petroleum Resources and the Economic and Financial Crimes Commission (EFCC), as well as international partners including Eni and Shell, for their roles in resolving the dispute.

READ ALSO: Tinubu seals landmark OPL 245 settlement, unlocks major deepwater investment

He said the outcome reflects the triumph of dialogue over conflict and prioritises national interest above narrower considerations.

“With this agreement, Nigeria can now move forward confidently, ensuring that the development of OPL 245 becomes a source of prosperity for the nation and for future generations,” Fagbemi said.

On Saturday, Group Chief Executive Officer of NNPC Limited, said the settlement would enable the development of the Zabazaba–Etan project, which is expected to unlock about 150,000 barrels per day of crude oil production.