The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday said that a news report indicating that it had given the nod to the divestment deal between Shell and the Renaissance Consortium was baseless.
In a statement by NUPRC’s Head of Public Affairs and Corporate Communication, Mrs. Olaide Shonola, the upstream regulator urged stakeholders and the general public to ignore the report by the newspaper.
According to the report titled: ‘Re-Boon for Nigeria as Shell’s $1.3 billion Assets Sale Gets Regulatory Nod’, the NUPRC had endorsed the deal and is now awaiting the final ministerial consent by President Bola Tinubu, who doubles as the Minister of Petroleum.
“The attention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been drawn to a publication in the Businessday of 11 September, 2024, purporting that the commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.
“It must be firmly stated that the information contained in the publication did not emanate from the commission. As part of the commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.
“Industry stakeholders and the general public are advised to disregard the publication as it is baseless,” the statement added.
According to Edun, proceeds from the bond will be directed towards critical sectors of the economy as approved by President Bola Ahmed Tinubu. The Minister noted that the successful issuance underscores the government’s commitment to diversifying its sources of funding and bolstering economic growth despite current economic challenges.
Edun expressed confidence in Nigeria’s economic trajectory, describing the bond issuance as extremely successful “The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy” the minister said.
Director General of the DMO, Ms. Patience Oniha, also expressed gratitude to all the parties involved in the transaction. She praised all parties including Africa Finance Corporation as Global Coordinator, United Capital Plc as Lead Issuing House/Coordinator, Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited as Issuing Houses. Our legal partners, Olaniwun Ajayi LP and G. Elias, and financial advisers, Constant Capital Markets and Securities Limited and Iron Global Markets Limited, for their critical roles in structuring and executing the bond.
“This transaction was made possible through the expertise and guidance of our advisers. We also appreciate the continued support of the Nigerian public and our institutional partners who contributed to the successful completion of this historic issuance,” Oniha said.
Speaking further, she said DMO was very pleased with the remarkable outcome of the exercise. She added in particular that over $900 million, which represented an over 180% subscription when compared to the $500 million that was offered, as well as the diverse investors who subscribed to the Bond, attested to the depth and increasing sophistication of the domestic fixed income securities market.
The DMO reaffirmed the Federal Government’s commitment to collaborating with investors and stakeholders to drive economic growth and development in the country.
