President Bola Ahmed Tinubu has approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep-offshore oil project being developed by Shell and its partners, in a move aimed at unlocking new jobs, boosting foreign-exchange inflows, and strengthening Nigeria’s long-term energy revenues.
The President also directed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the formal gazette of the incentives, ensuring full alignment with Nigeria’s existing legal, regulatory, and fiscal frameworks.
Disciplined incentives to attract new capital
Receiving a high-level Shell delegation led by the company’s Global Chief Executive Officer, Mr. Wael Sawan, President Tinubu described the approved incentives as disciplined, targeted, and globally competitive. He stressed that the measures are designed to attract fresh capital into Nigeria’s deep-offshore sector without eroding government revenues.
“These incentives are not blanket concessions,” the President said. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”
President Tinubu made clear that the incentives are tied to performance and outcomes, particularly in areas critical to national development such as employment generation, domestic value creation, and increased production capacity.
Clear timeline for Final Investment Decision
The President underscored the strategic importance of the Bonga South West project to Nigeria’s economic and energy future, setting a clear expectation for timely execution.
According to the President, the project has the potential to create thousands of direct and indirect jobs across the value chain, generate substantial foreign-exchange inflows, and deliver sustained government revenues over the life of the asset. He added that it would also deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services, further strengthening local capacity and expertise.
Commitment to policy stability and investor confidence
President Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed in government decision-making, noting that these elements are essential to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investments.
He highlighted recent progress in the sector, noting that Shell and its partners have invested nearly US$7 billion in Nigeria over the past 13 months, particularly in projects such as Bonga North and HI. The President described this level of investment as a clear indication that Nigeria’s broader economic and energy-sector reforms are beginning to yield tangible results.
Shell signals renewed confidence in Nigeria
In his remarks, Shell’s Global CEO, Mr. Wael Sawan, acknowledged significant improvements in Nigeria’s investment climate under the Tinubu administration. He said the reforms have increased Shell’s confidence in Nigeria as a destination for long-term, capital-intensive energy investments.
Mr. Sawan noted that greater policy clarity and engagement with government have strengthened Shell’s outlook on future projects, including Bonga South West and other deep-offshore developments.
High-level engagement
Members of the Shell delegation included senior executives from both Shell’s global leadership and its Nigerian operations, underscoring the strategic importance of the engagement and the Bonga South West project to the company’s global portfolio.
The approval and gazetting of the targeted incentives signal the Tinubu administration’s determination to unlock Nigeria’s deep-offshore potential, attract sustainable investment, and leverage the energy sector as a catalyst for jobs, foreign exchange earnings, and long-term economic growth.
