ExxonMobil has begun moves to scale down its operation in Nigeria, relocating to a smaller office space in Lagos.
According to Reuters, the oil giant will not be renewing a 33-year-old lease on its expansive offices in Lagos’s upscale Lekki district, which expires on Friday.
Quoting three sources familiar with the matter, Reuters said the move is part of ExxonMobil’s strategy to scale down operations in Nigeria.
Exxon is transferring employees from the 12-floor Mobil House, which is leased for $10 million a year, to a six-floor office building located 22 kilometres away in Ikoyi designed to house only half of the staff from the previous location.
The precise number of employees impacted by the office shutdowns is unknown, yet the action is expected to lead to job cuts and a reduced presence for Exxon in Nigeria.
It is believed that similar reductions are expected in other Nigerian cities where the company operates.
ExxonMobil, Shell, TotalEnergies, and Eni have all sought to leave Nigeria’s oil-rich Niger Delta in recent years due to security concerns, but these moves have faced regulatory hurdles.
ExxonMobil’s plan to sell its land and shallow-water assets to local oil firm Seplat Energy, agreed upon in 2022, is nearing completion.
ExxonMobil’s relocation to smaller offices and the absence of new investments underscore its commitment to scaling down its Nigerian operations, despite the Nigerian government’s efforts to attract multinational oil firms.
“The new office leaves no one in doubt about its future plans for Nigeria,” a company staff member told Reuters.
ExxonMobil has not yet commented on its relocation plans.
