$10bn ExxonMobil’s new investment, evidence of Tinubu’s investment-friendly policies -TMSG

Abuja, Sept. 29, 2024 – The Tinubu Media Support Group (TMSG) says the new $10 billion deep-water investment by ExxonMobil in Nigeria is yet another proof of the country’s readiness for serious business under the watch of President Bola Tinubu.

The group made the observation in a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo.

The statement reads: “Coming within few days of the kick off of a new $.5bn upstream gas project by TotalEnergies, this proposal by another International Oil Company (IOC) is an indication that the Tinubu administration has continued to make Nigeria a viable investment destination.

“ExxonMobil’s readiness to commit $10bn into its deep-water operation, as revealed by Chairman and Managing Director of its Nigeria operations, Shane Harris, is also a concrete proof that the country’s economy is on a positive trajectory.

“This is because there is no way a notable global energy company will commit such a humongous investment if it is not certain of getting value for its money. We know that scare mongers had claimed that the country is in no position to attract big businesses, but they have again been proved wrong. 

“So, for us at TMSG, it is a vote of confidence on the investment-friendly policies of the Tinubu administration as well as its pro-business approach to governance.

“The decision by the multinational oil giant to expand its investment in Nigeria is coming against the backdrop of a recent visit by the global head of the company where President Tinubu made his usual sales pitch about the country’s readiness for big businesses in all sectors.

“We can easily recall that it presented the President an opportunity to inform his guests about three Executive Orders on the oil and gas sector which became effective from February 28, 2024 and are targeted at ensuring new investments in the sector in line with provisions of the Petroleum Industry Act (PIA)

“These are Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; Presidential Directive on Local Content Compliance Requirements, 2024; and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines.

“For the avoidance of doubt, the EOs were necessitated by President Tinubu’s vision of a more investment friendly and the need to create a more enabling environment for transformative projects.

“Like Vice President Kashim Shettima said while receiving the ExxonMobil team on the sidelines of the UN General Assembly in New York,  we want to emphasize that the Renewed Hope Agenda places a strong emphasis on ease of doing business. 

“Which is why the Tinubu administration opted to tread the path of unifying the exchange rate, removing fuel subsidy, and implementing tax reforms which have been challenging for the people in the short term but targeted at creating a more stable and resilient economy as well as an improved business environment in the long run. 

“It is also good to know that inspite of the planned divestment of its onshore assets to Seplat Energy, ExxonMobil is keen to inject a billion dollars annually into maintenance operations as well as an additional $1.5bn to boost production by 50,000 barrels per day over the next few years.

“On the back of ongoing reforms in the oil sector, the country has taken steps to  streamline bureaucratic processes, enhance transparency, and provide fiscal incentives to attract investors.

And not surprisingly, the world is responding to Nigeria’s call, and we dare say that more global players will show interest in the country.

TMSG urged Nigerians to see ExxonMobil’s announcement of an additional $10bn investment in the country as a confirmation of President Tinubu’s promise of better days ahead. (GBN)