Yemisi Izuora
Nigeria’s energy supply initiative is expanding significantly after Shell has announced plans to invest up to US$20 billion over time in the Bonga South West oil project.
The announcement was made on Thursday when President Bola Ahmed Tinubu received the Chief Executive Officer of Shell Companies, Mr Wael Sawan, and his delegation at the State House, Abuja.
During the meeting, Shell reaffirmed its commitment to Nigeria’s oil and gas industry, highlighting the Bonga South West project as a key part of its long-term investment strategy in deep-water operations. The project is expected to enhance crude oil production, support energy security, and generate economic benefits, including jobs and increased government revenue.
President Bola Ahmed Tinubu has approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep-offshore oil project by Shell and its partners.
The President also directed the Special Adviser to the President on Energy, Mrs. Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.
Receiving the Shell delegation led by its Global Chief Executive Officer, Wael Sawan, President Tinubu said the incentives are disciplined, targeted, and globally competitive, designed to attract new capital without undermining government revenues.
“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
President Tinubu emphasised that the Bonga South West project is strategic to Nigeria’s economy, with the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over the life of the project. He added that the project would also deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.
The President reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed, noting that these reforms are critical to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.
He further noted that Shell and its partners have invested nearly US$7 billion in Nigeria in the past 13 months, particularly in Bonga North and HI, describing this as a clear sign that Nigeria’s economic and energy-sector reforms are delivering results.
In his remarks, Mr. Sawan said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that Shell is increasingly confident in Nigeria as a destination for long-term investment.
Members of the Shell delegation included senior executives from Shell’s global and Nigerian leadership.