Bola Tinubu, President of Nigeria, has approved a fiscal incentive package aimed at unlocking the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo Project.
In a statement released Tuesday, Nigerian National Petroleum Company Limited (NNPC Ltd) said the move could attract about $20 billion in Foreign Direct Investment (FDI) and revive large-scale offshore oil investments in the country.
According to the state-owned oil firm, the approval is designed to resolve long-standing fiscal and commercial challenges that stalled the project for nearly two decades.
The Bonga Southwest Aparo development, operated by Shell through its Nigerian deepwater subsidiary, is expected to produce around 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily once fully operational.
NNPC said the presidential approval followed months of technical and commercial discussions involving the national oil company, the Nigeria Revenue Service, the Special Adviser to the President on Energy Olu Verheijen, and Shell’s global leadership.
The statement noted that the decision marked a major step in Nigeria’s strategy to attract strategic investments and stimulate 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 company said.
NNPC explained that the approval also followed a directive issued by President Tinubu during a courtesy visit by Wael Sawan, Chief Executive Officer of Shell, to accelerate processes required to move the project to its final investment decision.
The company described the move as a signal of renewed investor confidence in Nigeria’s policy direction and a commitment by the government to translate reforms into tangible investment outcomes.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the approval as a major breakthrough for Nigeria’s oil and gas sector.
He noted that the Bonga Southwest project had remained stalled for almost 20 years due to fiscal uncertainties but said the latest development reflects the government’s determination to unlock strategic investments.
“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.
“With presidential approval now secured, we have broken a long-standing logjam that kept this strategic project on hold.”
NNPC said the project will become the first deepwater Final Investment Decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008, highlighting renewed confidence among international investors.
Once the FID is formally taken by project partners, the development will trigger full-scale capital investment required to develop the offshore field.
The company estimates the project will create over 5,000 direct and indirect jobs during construction and operational phases.
Industry analysts say the approval could signal the beginning of a new cycle of offshore investments in Nigeria, particularly as global oil companies seek stable fiscal environments before committing capital to large deepwater projects.
