Tinubu Approves $20bn Bonga Deepwater Project, Unlocking Major Investment Boost for Nigeria
By Onwe Wisdom, Pan Afric Reporters
Nigeria has taken a major step toward revitalising its oil and gas sector as President Bola Ahmed Tinubu approved a targeted fiscal incentive package to unlock the long-awaited Final Investment Decision (FID) on the $20 billion Bonga Southwest Aparo deepwater project.
The approval, according to a press release e-signed by NNPC Limited Chief Corporate Communications Officer, Andy Odeh secured by NNPC Limited after months of negotiations with key stakeholders, is expected to attract massive foreign direct investment, create thousands of jobs and significantly expand Nigeria’s deepwater oil production capacity.
The Bonga Southwest Aparo (BSWA) project, operated by Shell through its Nigerian subsidiary, marks the first Final Investment Decision on a deepwater Production Sharing Contract asset in Nigeria since 2008, signaling renewed global investor confidence in the country’s energy sector.
According to a statement issued Tuesday in Abuja by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the presidential approval followed extensive technical and commercial engagements involving the national oil company, the Nigeria Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and Shell Chief Executive Officer, Wael Sawan
The negotiations were initiated following President Tinubu’s directive during a courtesy visit by the Shell CEO, aimed at fast-tracking policy and fiscal enablers required to move the strategic offshore project to its long-delayed investment decision stage.
Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari described the approval as a breakthrough moment for Nigeria’s energy sector.
“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.
He noted that the Bonga Southwest project had remained stalled for nearly two decades but has now been revived through sustained advocacy and reforms under the current administration.
According to him, the milestone underscores NNPC’s commitment to unlocking Nigeria’s vast energy resources through strategic partnerships, innovation and efficient execution.
The fiscal incentive package approved by the president includes an enhanced Production Tax Credit and the resolution of issues arising from the 2021 dispute settlement agreement. The measures are designed to create a competitive investment framework that balances national revenue interests with attractive returns for investors.
NNPC Limited, acting as concessionaire, worked closely with Shell’s Nigerian Exploration and Production Company (SNEPCo) and other international oil company partners to design alternative fiscal solutions that address structural challenges while safeguarding Nigeria’s long-term economic interests.
Industry analysts say the project could reposition Nigeria as a leading destination for deepwater investment, especially at a time when global energy companies are seeking stable fiscal regimes and clear policy direction.
Once completed, the Bonga Southwest Aparo development is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, while generating more than 5,000 direct and indirect jobs across the value chain.
With presidential approval now secured, NNPC Limited and its partners are set to advance toward the final investment decision phase, triggering the multi-billion-dollar capital commitment that could transform Nigeria’s deepwater oil landscape and strengthen the nation’s energy security and revenue base.
