Tinubu Approves Incentives for Shell’s Bonga Oil Project, Demands FID Before 2027 Election
- President Tinubu approved targeted, investment-linked incentives for Shell’s Bonga South West project
- The project could create jobs, boost foreign exchange inflows, and expand local content participation
- Shell says Nigeria’s investment climate has improved under the current administration
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
President Bola Tinubu has approved the gazetting of targeted incentives aimed at supporting Shell’s proposed Bonga South West deep-offshore oil project and similar offshore developments.
Source: Twitter
According to a statement signed by the Special Adviser to the President on Media & Public Communication, Sunday Dare, the approval is designed to attract new investments, create jobs, and boost foreign exchange inflows without eroding government revenue, the presidency said.
As part of the directive, the president instructed the Special Adviser on Energy, Mrs. Olu Verheijen, to ensure the incentives are gazetted in line with Nigeria’s existing legal and fiscal frameworks.
Tinubu welcomes Shell delegates
Speaking while receiving a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, President Tinubu said the incentives are carefully structured and tied strictly to new investments.
According to him, the measures are not blanket concessions but are limited to fresh capital, increased production, strong local content participation, and value addition within the country.
Deep offshore projects to create jobs for Nigerians
Tinubu described the deep-offshore project as strategically important to Nigeria’s economy, noting that it could generate thousands of direct and indirect jobs, attract substantial foreign exchange inflows, and provide steady revenue to the government over its lifespan.
He added that the project would help expand Nigerians' participation in offshore engineering, fabrication, logistics, and energy-related services.
Tinubu wants FID on Bonga South West before 2027
The president also expressed expectations that the Bonga South West project would reach a Final Investment Decision within the first term of his administration.
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“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” the president said.
The president reaffirmed his administration’s commitment to policy consistency, regulatory clarity, and faster decision-making, stressing that these reforms are essential to restoring investor confidence and positioning Nigeria as an attractive destination for large-scale energy investments.
Source: Twitter
Tinubu also disclosed that Shell and its partners have invested nearly $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, describing the investments as evidence that recent economic and energy-sector reforms are yielding results.
In his remarks, Shell’s CEO, Wael Sawan, said Nigeria’s investment environment has improved significantly under the Tinubu administration, adding that the company is increasingly confident in the country’s long-term investment prospects.
The delegation included senior executives from Shell’s global and Nigerian leadership, the statement added.
Shell plans investment in Nigeria’s HI gas project
Legit.ng earlier reported that Shell announced plans to invest $2 billion in Nigeria’s HI offshore gas field in OML 144, located in the Niger Delta.
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The project, which is the second biggest investment commitment in 2 years, will expand Nigeria’s LNG production by producing 350 million standard cubic feet of gas per day by 2028.
The government is excited, as it stressed that the investment reflects renewed investor confidence
Source: Legit.ng
