By Seun Ibiyemi
Nigeria’s President, Bola Ahmed Tinubu, has approved a targeted fiscal incentive package aimed at unlocking the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater oil project, a development expected to attract about $20 billion in foreign direct investment into the country.
The approval marks a significant milestone in Nigeria’s efforts to stimulate strategic investments in the energy sector and accelerate economic growth through expanded oil and gas production.
According to a statement issued by the Chief Corporate Communications Officer of NNPC Limited, Andy Odeh, the presidential approval followed months of intensive technical and commercial negotiations involving the state oil company, the Nigeria Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and the Chief Executive Officer of Shell, Wael Sawan.
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The move also represents the culmination of a directive issued by President Tinubu during a courtesy visit by the Shell CEO, instructing relevant stakeholders to fast-track the enabling conditions required to move the strategic deepwater project toward investment approval.
The Bonga Southwest Aparo project is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, signaling renewed investor confidence in Nigeria’s oil and gas industry.
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a major breakthrough after nearly two decades of delays.
“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.
“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,” he added.
Ojulari further noted that the development underscores NNPC’s commitment to unlocking Nigeria’s vast energy potential through strong partnerships, disciplined innovation, and effective execution.
The fiscal package approved by the President includes an enhanced Production Tax Credit and the resolution of issues surrounding the 2021 dispute settlement agreement, creating a more competitive investment framework that balances national economic benefits with investor returns.
As concessionaire, NNPC Limited worked closely with the project operator, Shell Nigeria Exploration and Production Company (SNEPCo), and other contractors to design alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term economic interests.
The proposal was subjected to rigorous evaluation by the Nigeria Revenue Service before recommendations were forwarded to the Presidency for final approval.
Once fully developed, the Bonga Southwest Aparo project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day, significantly boosting Nigeria’s deepwater production capacity.
The project, operated by Shell in partnership with other international oil companies operating in Nigeria, is also projected to create over 5,000 direct and indirect jobs, while strengthening the country’s energy security and revenue base.
With presidential approval now secured, NNPC Limited and its partners are expected to proceed toward the Final Investment Decision, paving the way for a multi-billion-dollar capital commitment that could reshape Nigeria’s deepwater oil and gas landscape.
