President Bola Tinubu has been seeking with some success to woo foreign investment as Africa's most populous country grapples with a fiscal crisis.

But this week the upstream regulator surprised many in the industry by declining to approve Shell's $2.4 billion deal with the Renaissance consortium, dominated by local firms.

It did not give reasons for its decision and Shell has yet to comment. The company has ties that stretch back more than half a century and is one of the biggest investors in Nigeria's oil, which is the backbone of its economy and biggest foreign currency earner.

A similar deal by Exxon Mobil to sell onshore assets to Seplat Energy was approved this week, but only after a wait of more than two and half years.

--Reuters--