By Ayomide Otitoju
President Bola Ahmed Tinubu has approved a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) Deepwater Project, a development expected to attract about $20 billion in foreign direct investment into Nigeria’s oil and gas sector.
The approval marks a major milestone in Nigeria’s efforts to attract strategic investment and accelerate economic growth, while positioning the country for a new phase of deepwater oil production.
The decision followed months of technical and commercial negotiations involving NNPC Limited, the Nigeria Revenue Service, the Special Adviser to the President on Energy Olu Verheijen, and Wael Sawan, Chief Executive Officer of Shell.
The approval also reflects a directive issued by President Tinubu during a meeting with the Shell CEO to accelerate measures needed to move the project to FID, signalling renewed investor confidence in Nigeria’s policy direction.
Commenting on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a breakthrough for a project that had been stalled for nearly two decades.
“This approval is a testament to the President’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria,” Ojulari said. “For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam.”
He added that the milestone underscores NNPC’s commitment to unlocking Nigeria’s vast energy potential through partnerships, innovation and strong execution.
The Bonga Southwest project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, potentially restoring the country’s status as a major destination for deepwater investment.
The fiscal package approved by the President includes an enhanced Production Tax Credit and the resolution of the 2021 dispute settlement agreement, measures designed to create a competitive framework that balances national revenue interests with investor returns.
NNPC Limited worked closely with Shell Nigeria Exploration and Production Company and other project partners to develop alternative fiscal arrangements that address structural challenges while safeguarding Nigeria’s long-term economic interests. The proposal was reviewed by the Nigeria Revenue Service before recommendations were submitted to the Presidency.
The Bonga Southwest Aparo project, operated by Shell in partnership with several international oil companies, is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily once completed.
The project is also projected to create more than 5,000 direct and indirect jobs, contributing significantly to Nigeria’s energy security, government revenues and broader economic development.
With presidential approval secured, NNPC Limited and its partners are expected to move toward the final investment decision, paving the way for a multi-billion-dollar capital commitment that could reshape Nigeria’s deepwater oil landscape.
