The Federal Government has gazetted a package of targeted investment-linked incentives designed to unlock the long-delayed Bonga South West deepwater project, operated by Shell Nigeria Exploration and Production Company (SNEPCo) and its partners.
The approval, given by President Bola Ahmed Tinubu, aims to clear fiscal and regulatory hurdles for the multi-billion-dollar project, which has been on the drawing board for over a decade.
Speaking after a meeting with a Shell delegation led by its Global CEO, Wael Sawan, at the State House, President Tinubu emphasised that the incentives are “disciplined, targeted, and globally competitive,” aimed at attracting fresh capital without undermining government revenues.
“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”
The Bonga South West project, one of the largest deepwater oil developments in Nigeria, is estimated to hold significant reserves and requires an investment of over $10 billion to reach a Final Investment Decision (FID). President Tinubu set a clear timeline for the project, declaring, “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
The project is expected to have a substantial economic impact, with the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over its lifespan. It is also anticipated to deepen local capacity in offshore engineering, fabrication, and logistics.
President Tinubu also highlighted recent investments by Shell and its partners, noting that nearly $7 billion had been invested in Nigeria over the past 13 months, particularly in the Bonga North and HI projects. He described this as evidence that Nigeria’s economic and energy-sector reforms are yielding positive results.
In his response, Shell’s CEO, Wael Sawan, commended the Tinubu administration for improving Nigeria’s investment climate and expressed growing confidence in the country as a destination for long-term capital.
The Special Adviser to the President on Energy, Mrs. Olu Verheijen, has been directed to oversee the gazetting process in line with Nigeria’s law.
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