By Oke Peter
President Bola Ahmed Tinubu has granted approval for targeted fiscal incentives aimed at enabling the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, a development expected to attract about $20 billion in foreign direct investment and strengthen Nigeria’s energy sector.
The initiative, spearheaded by NNPC Limited, is seen as a major step toward revitalizing investment in Nigeria’s offshore oil industry and advancing the country’s broader economic growth agenda.
The approval follows months of technical and commercial negotiations involving NNPC Limited as concessionaire, the Nigeria Revenue Service, the President’s Special Adviser on Energy Olu Verheijen, and Wael Sawan, Chief Executive Officer of Shell.
The discussions were initiated after President Tinubu directed relevant stakeholders to accelerate the processes required to bring the strategic project to a final investment stage during a courtesy visit by the Shell CEO.
Commenting on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, said the decision reflects the administration’s commitment to unlocking major energy investments.
According to him, the Bonga Southwest project had remained stalled for nearly two decades, but recent policy reforms and sustained engagement have now paved the way for progress.
“This approval highlights the President’s leadership and NNPC’s capacity to structure complex, bankable transactions that deliver long-term value for Nigeria,” Ojulari stated.
He added that the milestone demonstrates NNPC’s commitment to unlocking the country’s vast energy potential through strategic partnerships, innovation, and disciplined execution.
The Bonga Southwest project will become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, signaling renewed investor confidence in the country’s offshore sector.
The approved fiscal framework includes an enhanced production tax credit and the resolution of the 2021 dispute settlement agreement, measures designed to ensure a competitive environment that balances national revenue with investor returns.
Working closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other partners, NNPC Limited developed alternative fiscal arrangements to address structural challenges while safeguarding Nigeria’s long-term economic interests.
Industry analysts say the development underscores NNPC’s shift toward partnership-driven growth. By aligning with global energy companies such as Shell and securing supportive fiscal policies, the company aims to translate ongoing reforms into tangible economic benefits, including employment opportunities, increased government revenue, and improved energy security.
Once the Final Investment Decision is completed, the multi-billion-dollar project is expected to reshape Nigeria’s deepwater oil landscape.
The Bonga Southwest Aparo project, operated by Shell in partnership with other international oil companies, is projected to create more than 5,000 direct and indirect jobs. At full capacity, it is expected to produce 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
