THIS DAWN — President Bola Ahmed Tinubu has approved a set of targeted, investment-linked incentives aimed at unlocking job creation, foreign exchange inflows, and energy-sector growth through Shell’s Bonga South West deep-offshore oil project and other strategic offshore developments.
The announcement was made following a high-level meeting at the State House in Abuja, where President Tinubu received a delegation from Shell led by its Global Chief Executive Officer, Wael Sawan.
Bonga Incentives Designed to Attract Capital Without Revenue Loss
President Tinubu emphasized that the approved incentives are disciplined, ring-fenced, and globally competitive, tailored to attract new capital while safeguarding 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,” he added.
He directed Mrs. Olu Verheijen, Special Adviser to the President on Energy, to facilitate the gazetting of the incentives in accordance with Nigeria’s existing legal and fiscal frameworks.
Strategic Importance of Bonga South West
The President described the Bonga South West project as a strategic asset for Nigeria’s economy, with the potential to:
- Create thousands of direct and indirect jobs
- Generate significant foreign exchange inflows
- Deliver sustained government revenues over the life of the project
- Deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” Tinubu declared.
Commitment to Policy Stability and Investor Confidence
President Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed.
He noted that these reforms are essential to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.
He highlighted that Shell and its partners have invested nearly US$7 billion in Nigeria over the past 13 months, particularly in Bonga North and HI.
He called it a clear sign that Nigeria’s economic and energy-sector reforms are yielding results.
Shell’s Response: Confidence in Nigeria’s Investment Climate
In his remarks, Shell CEO Wael Sawan commended the Tinubu administration for improving Nigeria’s investment climate.
Sawan stated that Shell is increasingly confident in Nigeria as a destination for long-term energy investment.
The Shell delegation included senior executives from both its global and Nigerian leadership teams.
The delegation signaled the company’s strong interest in expanding its footprint in Nigeria’s offshore oil sector.
The approval of targeted incentives for Shell’s Bonga South West project marks a significant step in Nigeria’s energy-sector transformation, according to a statement issued by the presidency.
The Tinubu administration said it is positioning Nigeria to reclaim its role as a leading destination for offshore oil investment.
It stressed that it’s trying to do so with a focus on attracting capital, boosting local content, and ensuring long-term economic returns.
Analyst believe the coming months will be critical as stakeholders work toward a Final Investment Decision.
The Decision could unlock billions in new investment and reshape Nigeria’s offshore energy landscape.
