Tinubu Shell Bonga incentives approved to unlock Shell’s $5bn Bonga South West deep offshore oil project and boost jobs and FX inflows

President Bola Ahmed Tinubu on Wednesday approved targeted fiscal incentives to unlock Shell’s long delayed 5 billion dollar Bonga South West deep offshore oil project, a move aimed at boosting investment, jobs and foreign exchange inflows into Nigeria’s economy.

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The approval was granted during a meeting with a Shell delegation led by Global Chief Executive Officer Wael Sawan at the State House in Abuja on Thursday.

In a statement issued on Thursday, the President’s Special Adviser on Media and Public Communication, Sunday Dare, said the decision was designed to accelerate stalled deep offshore projects and restore investor confidence in Nigeria’s energy sector.

The Bonga South West project, located about 120 kilometres offshore Nigeria in water depths of more than 1,000 metres, has remained stalled for over a decade due to prolonged fiscal disagreements between the Federal Government and Shell Nigeria Exploration and Production Company and its joint venture partners.

The project, estimated to cost more than 5 billion dollars, is expected to produce up to 150,000 barrels of oil per day at peak capacity and holds strong prospects for associated gas development.

Previous administrations failed to reach agreement with Shell on fiscal terms, as the oil major sought incentives to offset the high capital costs of deep water development amid volatile global oil prices and Nigeria’s challenging investment climate.

Announcing the breakthrough, President Bola Tinubu described the incentives as disciplined, targeted and globally competitive.

President Bola Tinubu said the incentives were not blanket concessions but investment linked measures focused on new capital inflows, incremental production, strong local content delivery and in country value addition.

President Bola Tinubu added that his expectation was for the Bonga South West project to reach a final investment decision within the first term of his administration.

As part of the directive, President Bola Tinubu instructed his Special Adviser on Energy, Olu Verheijen, to ensure the incentives are formally gazetted in line with Nigeria’s existing legal and fiscal frameworks, including the Petroleum Industry Act 2021.

The President stressed the strategic importance of the project, noting that it would generate thousands of direct and indirect jobs, deliver sustained government revenues and strengthen foreign exchange earnings over the life of the asset.

President Bola Tinubu also said the project would deepen Nigerian participation in offshore engineering, fabrication, logistics and energy services, reinforcing the country’s industrial base.

He reaffirmed his administration’s commitment to policy stability, regulatory certainty and execution speed, describing them as critical pillars for restoring investor confidence and positioning Nigeria as a preferred destination for large scale energy investment.

President Bola Tinubu revealed that Shell and its partners have invested nearly 7 billion dollars in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, calling it clear evidence that ongoing economic and energy sector reforms are delivering results.

Responding, Shell Global Chief Executive Officer Wael Sawan said Nigeria’s investment climate has improved significantly under the Tinubu administration, adding that the company is increasingly confident about long term investment opportunities in the country.