Abuja — Vice President Kashim Shettima has welcomed ExxonMobil's proposed $10 billion investment in Nigeria's deep-water oil operations, describing it as a clear testament to the administration's economic reforms and investment-friendly policies. Shettima stated this during a high-level meeting with ExxonMobil executives on the side-lines of the ongoing 79th Session of the United Nations General Assembly (UNGA) in New York, United States.
The deep-water project came as international maritime giant, DP World, also announced plans to develop a multibillion-dollar port project in Nigeria.
According to Shettima, "This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration's vision for a more investment-friendly Nigeria.
"We are committed to creating an enabling environment for such transformative projects."
The vice president elaborated on the Tinubu administration's efforts to ensure ease of doing business in the country.
He said, "The Renewed Hope Agenda places a strong emphasis on ease of doing business. We have initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors."
Shettima highlighted recent policy changes by the government, saying, "Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.
"These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run."
Addressing the specific concerns of the oil and gas sector, the vice president said, "We are actively working on revising the fiscal framework for deep-water operations. Our goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people. The potential ExxonMobil investment is a clear indication 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, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, reaffirmed the company's commitment to investment in Nigeria.
Harris said, "Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and eight billion barrels produced, we're not retreating but refocusing our investments on deep-water opportunities."
The centrepiece of ExxonMobil's new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.
"We're working closely with the president's office and the special adviser to the president to secure favourable fiscal arrangements that will make this significant investment possible," Harris explained.
Despite the planned divestment of its onshore assets to Seplat Energy, ExxonMobil aims to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.
Group Chairman and Chief Executive Officer of DP World, Sultan Ahmed bin Sulayem, revealed the company's intention of developing a multibillion-dollar port project in Nigeria during a courtesy visit to Shettima on the side-lines of UNGA in New York.
The proposal came as a direct response to Tinubu's aggressive investment drive and efforts to improve the ease of doing business in the country.
Sulayem stated, "Nigeria is a massive market with hugely underutilised potentials. The Nigerian market has the capacity to dominate this sector in Africa. It is a major African country with a huge asset and resource base.
"With our supply chain of over 2,500 points of sale to Nigeria, we will bring in the requisite capital, human and material resources needed to achieve this feat."
The DP World chief executive expressed confidence in the Nigerian economy, citing the country's vast import and export market as a key factor in their decision to invest.
Welcoming the initiative, Shettima said the "proposal is a testament to President Tinubu's avowed commitment to attracting foreign investments" to Nigeria.
He emphasised the Nigerian government's ongoing efforts to create a more investor-friendly environment.
Shettima said, "Nigeria is open to investors from around the world. We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market."
He reassured the investors of the government's full support and dedication to facilitating foreign investment and economic growth.
Relatedly, the Nigerian government secured a $600,000 relief fund and commitments from the Bill and Melinda Gates Foundation.to hasten relief efforts for victims of the recent devastating floods, as well as for health and agricultural sectors' reforms.
The foundation pledged the $600,000 for flood relief in Borno State and other health sector initiatives, with an additional $5 million grant approved for Lagos Business School and partners to develop the agricultural economics of industrial cassava.
The donations were announced in New York when Shettima held a meeting with the Bill and Melinda Gates Foundation, led by its head of Global Development Programme, Dr Christopher Elias, outside the UNGA meetings.
Shettima reaffirmed the commitment of the Tinubu administration to prioritisation of health, nutrition, and agricultural development, and placing them at the forefront of the country's development agenda.
"We are deeply committed to addressing the pressing developmental challenges facing our nation, particularly the significant malnutrition crisis," the vice president stated.
He emphasised the Nigerian government's dedication to integrity and effective leadership in tackling the challenge of development.
Shettima pointed out that there was an urgency in securing locations for maize production under the Telemaze programme
Promising swift action on import permits for certified seeds, Shettima said, "We recognise the critical importance of food security and industrial agricultural development. The Cassava Accelerator programme, in particular, holds immense potential for our economy.
"We are pursuing a whole-of-government approach to digitisation and data exchange systems, which we believe will revolutionise our public services."
He reiterated the government's commitment to digital transformation.
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The vice president expressed belief that "with the expertise" of Nigeria's ministers, "and the continued support of partners, like the Gates Foundation," the country remained confident in its "ability to drive meaningful change and improve the lives of all Nigerians".
The president of the Global Development Programme at Gates Foundation said the foundation was worried about the severe flooding in Borno and was "committed to supporting Nigeria in times of crisis".
The foundation also pledged support for Nigeria's health sector reforms, particularly in the fight against polio.
"We're impressed by the national taskforce's efforts to eliminate variant polioviruses by year-end," Elias stated.
President of Global Growth and Opportunity Division at the Bill and Melinda, Rodger Voorhies, detailed plans for scaling up drought-tolerant maize production and advancing the Nigeria Cassava Investment Accelerator programme.
Voorhies disclosed that a $5 million grant had been approved for the Lagos Business School and partners to develop the agricultural economics of industrial cassava.
"Industrial cassava presents a multi-billion-dollar opportunity for Nigeria," Voorhees explained.
He requested import permits for 5,000 metric tons of certified maize seed to build a foundation seed system in the country.
Director of Nigeria Country Office at Gates Foundation, Uche Amaonwu, expressed appreciation for the ongoing partnership, particularly highlighting a $60 million investment in sector-wide programmes and collaborations on reproductive health issues.
Meanwhile, President/Chief Executive Officer of Dangote Group, Alhaji Aliko Dangote, paid a courtesy visit to Shettima in New York. Dangote is also co-chair of the Bill and Melinda Gates Foundation.
