President Bola Tinubu has approved a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision, FID, on the Bonga Southwest Aparo, BSWA, deepwater project, a move expected to attract about $20 billion in foreign direct investment and significantly boost Nigeria’s energy sector.
Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited, Andy Odeh, disclosed this in a statement on Tuesday.
Odeh said the presidential approval marks a major milestone in Nigeria’s push to attract strategic investments and accelerate sustainable economic growth.
According to the statement, the project is expected to usher in a new phase of deepwater oil production and reinforce Nigeria’s position as a prime destination for offshore energy investments.
He noted that the approval followed months of intensive technical and commercial negotiations involving NNPC Limited as concessionaire, the Nigeria Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.
The statement noted that the breakthrough followed a directive issued by President Tinubu during a courtesy visit by the Shell chief, instructing stakeholders to fast-track the necessary enablers to move the strategic national asset to FID.
It added that the decision is seen as a signal of renewed investor confidence in Nigeria’s reform agenda and policy direction.
While commenting on the development, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bashir Bayo Ojulari, described the approval as a testament to the President’s leadership and NNPC’s commitment to structuring bankable energy 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.
“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,” Ojulari said.
He added that the milestone underscores NNPC’s commitment to unlocking Nigeria’s vast energy potential through strategic partnerships, disciplined innovation, and strong execution.
The Bonga Southwest project will represent the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, effectively re-establishing the country as a leading deepwater investment destination.
The fiscal package approved by the President includes an enhanced Production Tax Credit and the resolution of issues arising from the 2021 dispute settlement agreement.
These measures are expected to create a competitive fiscal framework that balances national revenue interests with investor returns.
NNPC Limited said it worked closely with Shell Nigeria Exploration and Production Company, SNEPCo, and other partners to develop alternative fiscal solutions capable of addressing structural constraints while safeguarding Nigeria’s long-term economic interests.
The proposal underwent rigorous evaluation by the Nigeria Revenue Service before recommendations were forwarded to the Presidency for approval.
The company noted that the development aligns with its broader strategy of promoting partnership-driven growth and translating the Federal Government’s investment reform agenda into tangible outcomes such as job creation, increased revenue, and improved energy security.
With presidential approval now secured, NNPC Limited and its partners are expected to proceed toward the Final Investment Decision, which will trigger a multi-billion-dollar capital commitment and transform Nigeria’s deepwater oil landscape.
Operated by Shell plc with other international oil companies as partners, the Bonga Southwest Aparo project is projected to generate more than 5,000 direct and indirect jobs.
Upon completion, it is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
