In a powerful endorsement of Nigeria’s economic direction, the Global Chief Executive Officer of Shell Plc, Mr. Wael Sawan, has declared that President Bola Tinubu’s leadership and vision are the primary reasons the energy giant is preparing to invest an additional $20 billion in the country.
The announcement came during a meeting between Mr. Sawan and President Tinubu at the Presidential Villa in Abuja, where the Shell CEO praised the administration for creating a “healthy climate for investments to thrive.”
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest”, Mr Sawan stated.
He described Shell’s renewed commitment as a “sea change” from just a few years ago when the corporation was pulling back on investments in Nigeria. The planned $20 billion Foreign Direct Investment (FDI) is earmarked for the massive Bonga South West deep offshore oil project and would stand as “one of the biggest energy projects in the world.”
The investment would be made alongside Shell’s partners, with approximately half dedicated to capital expenditure, injecting significant funds and technical capacity into the Nigerian economy.
In a direct response to secure the historic deal, President Tinubu approved the gazetting of targeted, investment-linked fiscal incentives to support the Bonga South West project. The President emphasized that these were not blanket concessions.
“These incentives are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition,” President Tinubu stated.
He set a clear deadline for the project, declaring, “My expectation is clear: Bonga South West must reach a Final Investment Decision (FID) within the first term of this administration.”
Mr. Sawan highlighted that Nigeria, under the current administration, has become one of the top destinations for global oil majors, contrasting it with other investment opportunities worldwide. He cited Shell’s recent $5 billion commitment to Bonga North and other projects as evidence of growing confidence.
“We want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades,” the Shell CEO said, underscoring the need for long-term stability. He also commended the professionalism of the President’s team, calling them “amongst the best that we are dealing with anywhere in the world.”
The meeting concluded with President Tinubu directing his Special Adviser on Energy, Mrs. Olu Arowolo-Verheijen, to facilitate the immediate gazetting of the approved incentives in line with Nigeria’s legal and fiscal frameworks.
Discussion about this post