Tinubu Approves Fiscal Incentive to Unlock $20bn Bonga Deepwater Project
Abuja — President Bola Ahmed Tinubu has approved a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision (FID) for 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 Nigerian National Petroleum Company Limited (NNPC Ltd) said the approval marks a major milestone in the country’s efforts to attract strategic investment and expand deepwater oil production.
According to the national oil company, the decision followed months of technical and commercial negotiations involving NNPC Limited as concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and Shell CEO Wael Sawan.
The approval also aligns with President Tinubu’s directive issued during a previous meeting with the Shell chief executive to accelerate the policy and fiscal enablers required to move the strategic project to a final investment decision.
Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, described the development as a breakthrough after nearly two decades of delays.
“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.
“For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam. This is what partnership, persistence and policy clarity can achieve.”
He added that the milestone further reinforces NNPC’s commitment to unlocking Nigeria’s energy potential through strategic partnerships and innovation.
The Bonga Southwest Aparo project, operated by Shell Nigeria Exploration and Production Company (SNEPCo) with other international oil companies as partners, will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
The fiscal framework approved by the President includes an enhanced Production Tax Credit and resolution of issues related to the 2021 dispute settlement agreement, aimed at creating a competitive environment for investors while safeguarding Nigeria’s long-term economic interests.
NNPC Ltd said it worked closely with SNEPCo and other partners to develop alternative fiscal solutions capable of addressing structural challenges while ensuring national value.
Once the Final Investment Decision is reached, the project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily upon completion.
The development is also projected to create more than 5,000 direct and indirect jobs, while strengthening Nigeria’s energy security and boosting government revenue.
NNPC said the presidential approval signals renewed investor confidence in Nigeria’s reform agenda and positions the country once again as a competitive destination for deepwater oil investments.
