… says Nigeria is open to investors

… affirms Tinubu’s commitment to accelerate approvals for onshore, deep offshore assets, gas projects

Oredola Adeola

The Nigerian Government has expressed optimism regarding the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) commitment to resolving outstanding issues surrounding Shell’s proposed sale of its onshore assets in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to the Renaissance consortium.

Olu Verheijen, the Special Adviser to the President on Energy, gave the assurance during a virtual interview with journalists and analysts from 54 African nations under the auspices of the African Association of Energy Journalists and Publishers (AJERAP).

Responding to inquiries about the divestment deal, which has faced challenges, Verheijen emphasized the importance of recognizing the successes achieved by the current administration in facilitating the closure of numerous divestment deals.

She noted that previous administrations took considerable time to finalize some of the transactions, but there has been a notable improvement in the speed of approvals under President Bola Ahmed Tinubu’s administration.

Verheijen highlighted that many divestment deals have now been successfully concluded, indicating that NUPRC SPDC and Renaissance consortium are actively engaging in discussions to close the deal.

“We understand the need to accelerate investments; it is an improving trend, and the outstanding issues will be resolved in line with Tinubu’s administration goals,” she stated.

Advisors Reports confirmed that Engr. Gbenga Komolafe, Chief Executive of NUPRC, recently revealed that the government approved four divestment deals during the Commission’s third anniversary.

However, the sale to the Renaissance Consortium was rejected due to concerns over their capacity to manage the assets effectively.

Additionally, a legal dispute involving Global Gas and Refining Limited, which sought to block the sale, and significant opposition from civil society groups regarding environmental impacts, complicated the process.

Meanwhile, Ms. Verheijen noted a marked improvement in the speed of approvals for divestment deals compared to previous administrations.

She said, “If you look at the level of approvals and the speed at which they occurred, you will see that there is significant progress.

“The government remains confident in NUPRC’s regulatory process and aims to facilitate exits for international oil companies (IOCs) away from onshore operations toward a focus on deep offshore and gas businesses.

This is specifically meant for IOCs wishing to shift their focus to other areas, particularly deep offshore and gas ventures.

According to Verheijen, IOCs possess essential capital and technical expertise that can unlock value in the complex deep offshore and gas sectors.

For onshore operators, she stressed the need for independents to align with the objective of rapidly increasing production, ensuring they have the necessary technical and financial capacity to do so.

She also acknowledged the Tinubu administration’s efforts to attract and retain investors in the energy sector through sound policies and appealing incentives.

“When we took office, we noted a decline in investment, partly due to security challenges and fiscal incentives.

“We needed to reassess these aspects, including the revenue or profit share between the government and investors,” Verheijen explained.

Verheijen therefore restated that Federal Government aims to rebalance and enhance Nigeria’s competitiveness compared to other investment destinations, recognizing the ongoing interest from international businesses.

“Ultimately, we are learning that accelerating investments and approvals is essential, and we are seeing steady progress in this regard,” she concluded.