President Bola Tinubu has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision on the Bonga Southwest Aparo deepwater project.
This is marking a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth.
The project is estimated to attract about $20 billion in foreign direct investment and position Nigeria for a new era of deepwater production.
The approval followed months of intensive technical and commercial negotiations involving NNPC as the concessionaire, the Nigeria Revenue Service, the special adviser to the president on Energy, Olu Verheijen, and the Shell CEO, Wael Sawan.
The development is a culmination of the president’s directive issued during a courtesy visit by Mr Sawan to fast-track the enablers required to move this strategic national asset to FID.
Speaking on the development, NNPC’s group CEO, Bayo Ojulari, said it signalled renewed confidence in Nigeria’s policy direction.
”This development will translate reform momentum into tangible investment outcomes. 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.
“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. This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence,” he said.
Mr Ojulari said the Bonga Southwest project would be the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination.
He said the fiscal package approved by President Tinubu included an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
He said that NNPC Limited, as the concessionaire, worked closely with SNEPCo and the broader contractor parties to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests.
According to him, the approval was granted after a rigorous evaluation by the NRS and submission of recommendations to the Presidency.
The NNPC boss said the Bonga Southwest Aparo project, operated by Shell with all International Oil Companies in Nigeria as partners, would create over 5,000 direct and indirect jobs.
He said it would also deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.