Tinubu approves incentives for Shell's ₦7 billion Bonga South West offshore oil project
President Bola Tinubu has approved targeted, investment-linked incentives to support the proposed Bonga South West deep-offshore oil project by Shell and its partners. This follows a meeting between Tinubu and Shell's Global CEO, Wael Sawan, at the State House on Thursday. The President directed his Special Adviser on Energy, Olu Verheijen, to facilitate gazetting the incentives within Nigeria's existing legal frameworks.
Tinubu stressed these incentives are disciplined and ring-fenced, not blanket concessions. They focus on attracting new capital, boosting local content, and ensuring in-country value addition, without undermining government revenues. He set a clear expectation: the Bonga South West project must reach a Final Investment Decision within the first term of his administration.
The project is strategic for Nigeria's economy, with potential to create thousands of direct and indirect jobs, generate significant foreign exchange, and deliver sustained government revenues over its life. It would also deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services. Shell and partners have invested nearly $7 billion (over ₦10 trillion) in Nigeria in the past 13 months, particularly in Bonga North and HI, signalling that reforms are delivering results.
Sawan expressed increased confidence in Nigeria as a long-term investment destination, citing a remarkably improved investment climate under the Tinubu administration. The President reaffirmed his administration's commitment to policy stability, regulatory certainty, and speed to restore investor confidence.
With significant investment already flowing and job potential in the thousands, will Nigeria's targeted incentives be enough to secure the Final Investment Decision for Bonga South West, or will global energy market volatility and regulatory follow-through remain key challenges?