By: ThinkBusiness Africa
President Bola Tinubu has approved “investment-linked” incentives to fast-track Shell’s long-delayed Bonga South West deepwater oil project, aimed at revitalizing Nigeria’s energy sector,
According to a statement from the presidential spokesman, Bayo Onanuga on Thursday, the approval marks a breakthrough for a project that has sat on the shelf for nearly a decade, potentially unlocking $20 billion in total investment.
President Tinubu emphasized that these incentives are not “blanket concessions” but are specifically structured to attract fresh capital while protecting existing government revenue.
“These incentives are ring-fenced and investment-linked, focused strictly on new capital and incremental production, strong local content delivery, and in-country value addition,” the President stated.
The President directed his Special Adviser on Energy, Olu Verheijen, to immediately begin the gazetting process to ensure the terms are legally integrated into Nigeria’s fiscal framework.
The Bonga South West project is expected to be a cornerstone of Nigeria’s economic recovery. The field is estimated to produce approximately 150,000 barrels of oil per day, significantly aiding Nigeria’s goal of reaching 2 million barrels per day.
Also, The revival of the project is expected to bring idle fabrication yards back to life, creating thousands of direct and indirect jobs for Nigerian engineers and technicians.The multi-billion dollar investment is poised to provide a massive injection of foreign currency and long-term revenue for the federation.
The President set a firm deadline for the project, stating his clear expectation that a Final Investment Decision (FID) be reached within his first term—specifically before May 2027.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” he said.
Shell CEO Wael Sawan praised the administration’s reforms, noting that Nigeria’s investment climate has “improved remarkably.” He revealed that Shell and its partners have already invested nearly $7 billion in Nigeria over the last 13 months, including work on the Bonga North and HI projects, which he cited as evidence that the government’s energy-sector reforms are yielding tangible results.
Last year, Shell invested $2 billion in the Nigerian gas sector. The HI gas project, located in the shallow offshore field (OML 144), is projected to begin delivering approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028.
