Tinubu Fast-tracks Shell’s Multi-Billion Dollar Bonga Project with New Investment Incentives
In a major move to bolster Nigeria’s energy sector and stabilize the economy, President Bola Ahmed Tinubu has approved a suite of targeted, investment-linked incentives aimed at unlocking Shell’s massive Bonga South West deep-offshore project. The decision, announced during a high-level meeting with Shell’s Global CEO, Wael Sawan, marks a significant step in the administration’s strategy to attract fresh capital and boost foreign exchange inflows through large-scale energy developments.
The President has directed the Special Adviser on Energy, Mrs. Olu Verheijen, to oversee the formal gazetting of these incentives, ensuring they align with Nigeria’s existing legal and fiscal frameworks. Unlike broad tax breaks, these measures are “ring-fenced,” meaning they are strictly tied to new capital investments and incremental oil production. President Tinubu was firm in his timeline, stating his expectation for the Bonga South West project to reach a Final Investment Decision (FID) before the end of his first term.
During the discussions, the President emphasized that the Bonga South West project is a cornerstone of Nigeria’s economic revitalization. Beyond the immediate financial gains, the project is expected to create thousands of jobs for Nigerians and deepen local expertise in offshore engineering, fabrication, and logistics. By offering globally competitive terms, the administration aims to position Nigeria as a preferred destination for energy giants who have recently been looking elsewhere for stable investment environments.
The President noted that the reforms are already yielding tangible results, highlighting that Shell and its partners have committed nearly $7 billion to Nigerian projects—including Bonga North and HI—over the last 13 months alone. This influx of capital serves as a vote of confidence in the government’s efforts to provide regulatory certainty and speed in a sector often hampered by bureaucracy.
Responding to the President’s remarks, Wael Sawan praised the shifting investment climate in Nigeria. He noted that the improved policy landscape under the current administration has significantly bolstered Shell’s confidence, making the country an increasingly attractive destination for long-term, high-value projects. As the government moves to gazette these new incentives, the energy industry will be watching closely to see how quickly these multi-billion dollar offshore dreams can turn into operational realities.
