President Bola Tinubu has approved a set of targeted incentives aimed at stimulating investment in Nigeria’s deep offshore oil assets, with a focus on Shell’s proposed Bonga South West project. The move is expected to unlock jobs, boost foreign exchange inflows, and accelerate development in the sector.
The approval was announced in a statement by the State House, following a meeting between the President and a delegation from Shell, led by its Global Chief Executive Officer, Wael Sawan. The statement noted that the incentives are designed to be disciplined, targeted, and globally competitive, without compromising government revenues.
The President directed his Special Adviser on Energy, Mrs. Olu Verheijen, to ensure the incentives are formally gazetted in line with Nigeria’s existing legal and fiscal frameworks. This move underscores the administration’s resolve to fast-track credible investments in the energy sector.
While receiving the Shell delegation, President Tinubu emphasized that the incentives are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition. He expects Shell and its partners to move swiftly, with the Bonga South West project required to reach a Final Investment Decision (FID) within the first term of his government.
The Bonga South West project is strategic to Nigeria’s economic recovery and long-term growth, with the potential to create thousands of direct and indirect jobs, generate substantial foreign exchange inflows, and deliver sustained revenues to the government. The project will also deepen Nigerian participation in offshore engineering, fabrication, logistics, and other critical energy services, strengthening local capacity across the oil and gas value chain.
The President reaffirmed his administration’s broader reform agenda, assuring investors of policy stability, regulatory certainty, and speed of execution. These factors are essential to restoring confidence and positioning Nigeria as a preferred destination for large-scale energy investments.
Shell’s Global CEO, Wael Sawan, commended the Tinubu administration for improving Nigeria’s investment climate, noting that the company’s confidence in Nigeria as a long-term investment destination has continued to grow. Shell remains committed to working with the Federal Government and its partners to unlock the full potential of Nigeria’s deep offshore resources.
The development is a significant step towards boosting Nigeria’s oil production and economy, with the potential to attract fresh capital and stimulate incremental oil production, especially in deep offshore fields. With the incentives in place, the government expects to see significant progress in the energy sector, driving economic growth and development in the country.
