President Bola Ahmed Tinubu has approved targeted incentives to unlock Shell’s long-delayed $5 billion Bonga South-West deep-offshore project, directing his Special Adviser on Energy, Olu Verheijen, to ensure the incentives are gazetted in line with Nigeria’s legal and fiscal framework.
The announcement followed a meeting on Thursday at the State House, Abuja, where Tinubu received a Shell delegation led by Global CEO Wael Sawan.
According to Sunday Dare, the President’s Special Adviser on Media and Public Communication, the incentives are intended to stimulate job creation, boost foreign exchange inflows, and accelerate development of Shell’s deep-offshore projects.
The Bonga Southwest project, located roughly 120 kilometres offshore in water depths exceeding 1,000 metres, has been stalled for over a decade due to disagreements over fiscal terms between the Nigerian government and Shell, along with its joint venture partners.
Experts estimate the project will cost over $5 billion and produce around 150,000 barrels of oil per day at peak capacity, alongside significant gas production potential.
Previous administrations struggled to finalize terms, with Shell seeking incentives to make the capital-intensive project commercially viable amid volatile global oil prices and Nigeria’s challenging investment climate.
President Tinubu described the approved incentives as “disciplined, targeted, and globally competitive,” emphasizing that they are ring-fenced, investment-linked, and focused on new capital, incremental production, local content, and in-country value addition.
“These incentives are not blanket concessions. My expectation is clear: Bonga Southwest must reach a Final Investment Decision within the first term of this administration,” Tinubu stated.
The President highlighted the strategic importance of the project, noting that it will:
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Create thousands of direct and indirect jobs
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Generate significant foreign exchange inflows
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Provide sustained government revenues
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Strengthen Nigerian participation in offshore engineering, fabrication, logistics, and energy services
Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and efficiency, stressing that these reforms are vital to restoring investor confidence and positioning Nigeria as a top destination for large-scale energy investment.
He also pointed out that Shell and its partners have invested nearly $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, demonstrating the positive impact of ongoing economic and energy-sector reforms.
In response, Shell CEO Wael Sawan praised the Tinubu administration for improving Nigeria’s investment climate and expressed growing confidence in the country as a long-term investment destination.
The Bonga field, operated by Shell, began production in 2005 and was Nigeria’s first deep-water development, marking a milestone in the nation’s offshore oil industry.
