President Bola Ahmed Tinubu has approved targeted fiscal incentives to unlock the long-awaited Final Investment Decision (FID) on 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 project, driven by NNPC Limited, is seen as a major step in Nigeria’s efforts to attract strategic investments and boost sustainable economic growth in the energy industry.
The approval followed months of technical and commercial negotiations involving NNPC Limited as concessionaire, the Federal Inland Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and Wael Sawan, Chief Executive Officer of Shell.
The decision is also said to be in line with a directive issued by President Tinubu during a courtesy visit by the Shell CEO to fast-track processes required to move the strategic project to the investment stage.
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a major milestone for Nigeria’s energy sector.
“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.
He noted that the Bonga Southwest project had remained stalled for nearly two decades but has now gained renewed momentum under the administration’s reform-driven policies.
According to him, the development reflects NNPC’s commitment to unlocking Nigeria’s vast energy resources through strategic partnerships, innovation and efficient project execution.
Industry analysts say the Bonga Southwest project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, signalling renewed investor confidence in the country’s oil and gas sector.
The fiscal package approved by the President includes an enhanced Production Tax Credit and the resolution of issues related to the 2021 dispute settlement agreement, measures aimed at creating a competitive investment framework that balances national benefits with investor returns.
NNPC Limited said it worked closely with the Shell Nigeria Exploration and Production Company and other partners to develop fiscal solutions capable of addressing structural constraints while safeguarding Nigeria’s long-term interests.
The Bonga Southwest Aparo project, operated by Shell in partnership with international oil companies operating in Nigeria, is expected to generate more than 5,000 direct and indirect jobs.
Upon completion, the project is projected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
The press release was made available to the public by Andy Odeh the Chief Corporate Communications Officer NNPC Limited, Abuja.
