ExxonMobil has announced a landmark $10 billion investment plan in Nigeria’s deep-water oil sector, marking a significant step towards expanding its operations in the country. The news was confirmed by Vice President Kashim Shettima during a high-level meeting with ExxonMobil executives at the 79th United Nations General Assembly in New York. Shettima emphasized that the proposed investment aligns with President Bola Tinubu’s vision of creating an investment-friendly environment.
The Vice President highlighted the administration’s economic reforms as a key factor in attracting such major investments. “This investment by ExxonMobil reflects confidence in Nigeria’s potential and our commitment to ensuring that global investors see Nigeria as a prime destination,” Shettima remarked. He also reiterated that this is part of the broader “Renewed Hope Agenda” aimed at fostering a robust economic climate through policy reforms designed to streamline business operations in Nigeria.
President Tinubu’s Economic Reforms Boost Investor Confidence
Vice President Shettima took the opportunity to underline the economic reforms implemented by President Tinubu’s administration, which have been instrumental in attracting foreign investments like ExxonMobil’s deep-water venture. One of the most notable reforms is the unification of Nigeria’s exchange rate, aimed at reducing currency instability and encouraging foreign direct investment (FDI). Shettima further noted that the removal of fuel subsidies and comprehensive tax reforms are crucial elements of the administration’s strategy to stabilize Nigeria’s economy.
“The President has introduced policies that, while challenging in the short term, are designed to yield long-term benefits for both investors and Nigerian citizens. The unification of the exchange rate, the removal of fuel subsidies, and the reform of the fiscal framework for deep-water operations are key to this strategy,” Shettima added. These reforms are expected to not only boost investment but also promote economic diversification, creating a more predictable and sustainable business environment for both local and international stakeholders.
ExxonMobil’s Strategic Shift Towards Deep-Water Exploration
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s long-term commitment to Nigeria. As ExxonMobil celebrates 70 years of oil production in the country, Harris outlined the company’s plans to pivot towards deep-water opportunities, with the Owo project serving as the cornerstone of their new strategy. The Owo subsea tie-back project is expected to represent a significant portion of the $10 billion investment, reflecting ExxonMobil’s shift from onshore to offshore oil exploration.
“Our commitment to Nigeria remains steadfast. We are refocusing our investments on deep-water opportunities, where we see substantial potential for growth,” Harris stated. ExxonMobil’s strategy includes injecting $1 billion annually into maintenance operations while investing an additional $1.5 billion to increase production by 50,000 barrels per day in the coming years. Despite divesting its onshore assets to Seplat Energy, the oil giant is determined to maintain its footprint in Nigeria’s energy sector, particularly in deep-water projects where fiscal incentives are favorable.
DP World Announces Multibillion-Dollar Port Project
In addition to ExxonMobil’s investment, international maritime leader DP World has unveiled plans to develop a multibillion-dollar port project in Nigeria. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, disclosed the company’s intentions during a courtesy visit to Vice President Shettima at the United Nations General Assembly. The project is part of DP World’s broader strategy to tap into Africa’s rapidly growing logistics and trade markets, positioning Nigeria as a regional hub.
This proposed port development is seen as a direct response to President Tinubu’s aggressive push to improve infrastructure and streamline business operations in the country. DP World’s commitment is expected to further enhance Nigeria’s logistics and transportation sectors, creating new jobs and boosting the country’s economic growth. “Our aim is to help transform Nigeria’s maritime and trade infrastructure, which is vital for economic development,” Sultan Ahmed stated. This project complements the government’s efforts to create a more business-friendly environment, aligning with the administration’s push for infrastructure development as a catalyst for economic growth.
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