The Chief Executive Officer of Shell Plc, Wael Sawan, has commended President Bola Tinubu’s administration for creating a favorable investment climate in Nigeria. During a meeting at the Presidential Villa, Sawan expressed Shell’s intention to invest an additional $20 billion in the country, citing the president’s “robust and bold leadership” as a key motivator.
Sawan noted that Nigeria has regained investor confidence under President Tinubu’s administration, allowing Shell to expand its investments in the country. He highlighted the company’s recent investments, including $5 billion in Bonga North and $2 billion in the HI project, as well as its contributions to the gas project at NLNG.
The Shell CEO described the company’s commitment as a significant shift from its reduced investments in Nigeria several years ago. He also revealed plans for the Bonga Southwest project, which could involve an estimated $20 billion investment if it reaches a Final Investment Decision. This project is expected to be one of the largest energy projects in the world, with half of the investment allocated to capital expenditure and the rest for operating costs.
President Tinubu responded by approving the gazetting of targeted, investment-linked incentives to support the Bonga Southwest deep offshore oil project. The incentives are designed to support new capital and incremental production, strong local content delivery, and in-country value addition. The president directed his Special Adviser on Energy to facilitate the incentives within Nigeria’s legal and fiscal frameworks.
The development is seen as a significant boost to Nigeria’s economy, with the potential to create new opportunities for growth and investment. With Shell’s expanded investment, the country is poised to regain its position as a major player in the global energy sector. The president’s commitment to creating a favorable investment climate has sent a positive signal to international investors, highlighting Nigeria’s potential for long-term growth and development.
