In 2021, Seplat Energy, a leading indigenous Oil and Gas Company, initiated talks to acquire Mobil Producing Nigeria Unlimited, the local offshore shallow-water operation of ExxonMobil. The deal, worth $1.3 billion, was set to boost the Nigerian economy. However, the Buhari administration’s interference in the transaction raised concerns about transparency and business confidence. It is crucial for the current business-friendly Tinubu administration to rectify this issue and prioritize a conducive business environment.
The interference in the Seplat-ExxonMobil takeover bid highlights the need for an administration that values transparent commercial transactions. Political interference undermines transparency and erodes investor confidence, deterring both local and foreign investors. This hinders economic growth and development, as potential investors question the fairness and integrity of the system.
Furthermore, a business-friendly administration should uphold the rule of law and protect asset rights. Political interference creates an uncertain business environment, discouraging long-term investments and hindering economic stability. Investors need assurance that their investments will be protected and contractual agreements will be honored.
By discouraging political interference, a business-friendly administration can foster economic growth and job creation. A transparent and predictable business environment encourages businesses to invest, expand, and create employment opportunities. The successful completion of the Seplat-ExxonMobil takeover bid could have led to increased investment, job creation, and economic growth in the oil and gas sector.
Given the current economic challenges faced by Nigeria, it is critical to conclude the Seplat-ExxonMobil transaction without further delays. The country’s declining oil production capacity and reduced dollar revenues necessitate the completion of this deal, which would earn a significant sum of $1.3billion.
To attract foreign direct investment and overcome economic challenges, the Tinubu administration must prioritize transparency, investor confidence, the rule of law, and property rights. By creating an enabling environment for businesses to thrive, the administration can restore investor confidence and position Nigeria as open for business. This can be achieved through economic policies that promote ease of doing business, remove barriers and corruption in government agencies, and discourage political interference.
It is crucial for the Tinubu administration to prioritize the development of a transparent and predictable business environment that fosters economic growth and job creation. This will not only benefit the teeming population but also address the issue of unemployment among the country’s youth. By upholding these principles, Nigeria can regain its once buoyant economic situation and prevent further decline of the local currency, the Naira.
In conclusion, a business-friendly Nigerian economy is essential for attracting investment, promoting economic growth, and creating job opportunities. The Tinubu administration must prioritize transparency, investor confidence, the rule of law, and property rights to create an enabling environment for businesses to thrive. By doing so, Nigeria can overcome its economic challenges and restore its position as an attractive destination for foreign direct investment.
NB: Sonny Iroche is 2022/2023 Senior Academic Visitor, African Studies Centre University of Oxford, UK. He can be reached on X (Twitter) @IrocheSonny, Email: siiroche5@gmail.com
