President Bola Tinubu has approved a targeted fiscal incentive package to unlock the long-delayed Final Investment Decision for the Bonga Southwest Aparo deepwater project, a move expected to attract approximately $20 billion in foreign direct investment and revive one of Nigeria’s most significant offshore oil assets.
The approval followed months of technical and commercial negotiations involving the Nigerian National Petroleum Company Limited, fiscal authorities, the Special Adviser to the President on Energy, Olu Verheijen, and Shell Chief Executive Officer Wael Sawan. It represents the culmination of a directive issued during Sawan’s courtesy visit to the president in January, when Shell signalled renewed interest in expanding its Nigerian investments.
During that meeting, Sawan cited improved policy consistency, political stability, and the administration’s reform direction as factors strengthening the company’s confidence. “We are very keen to invest in Nigeria, but I would say this has not always been the case,” he told the president.
The Bonga field, Nigeria’s first deepwater oil project, achieved first oil in 2005. Located about 120 kilometres off the Niger Delta coast, it has production capacity of 225,000 barrels of crude oil per day and 150 million standard cubic feet of gas per day. The proposed Bonga Southwest/Aparo expansion is expected to add about 150,000 barrels of oil per day to national output.
NNPC Group Chief Executive Officer Bashir Ojulari said the project had remained stalled for nearly two decades. “Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam,” he stated. “This is what partnership, persistence, and policy clarity can achieve.”
The approval signals renewed investor confidence in Nigeria’s energy policy direction at a time when the country is seeking to attract large-scale investment, raise production, and strengthen foreign exchange earnings.
