President Bola Tinubu has approved targeted incentives to unlock Shell’s long-delayed $5bn Bonga South-West deep-offshore oil project, signalling renewed government commitment to attracting large-scale energy investments into Nigeria. The approval also includes a directive for the incentives to be formally gazetted in line with existing legal and fiscal frameworks.
The decision was taken on Wednesday when the President received a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, at the State House in Abuja. The development was disclosed in a statement issued on Thursday by the President’s Special Adviser on Media and Public Communication, Sunday Dare.
The Bonga South-West project, located about 120 kilometres offshore Nigeria in water depths of over 1,000 metres, has remained stalled for more than a decade due to fiscal disagreements between the Federal Government and Shell Nigeria Exploration and Production Company, alongside its joint venture partners. Estimated to cost over $5bn, the project is expected to produce up to 150,000 barrels of oil per day at peak, with additional gas production potential.
President Tinubu described the approved incentives as “disciplined, targeted, and globally competitive,” stressing that they are investment-linked and designed to attract fresh capital without eroding government revenues. He noted that the incentives are ring-fenced to support new investments, incremental production, strong local content delivery, and in-country value addition.
The President directed his Special Adviser on Energy, Olu Verheijen, to ensure the incentives are gazetted in compliance with the Petroleum Industry Act 2021 and other applicable regulations. He emphasised that the project is critical to job creation, foreign exchange inflows, and long-term revenue generation for the country.
Tinubu also disclosed that Shell and its partners have invested nearly $7bn in Nigeria over the past 13 months, citing the Bonga North and HI projects as evidence of improving investor confidence. In response, Shell CEO Wael Sawan praised Nigeria’s evolving investment climate, expressing confidence in the country as a destination for long-term energy investments.
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