In a strategic push to attract capital and stimulate Nigeria’s oil sector, President Bola Ahmed Tinubu has approved a set of targeted, investment-linked incentives for Shell’s proposed Bonga South West deep offshore project and other similar developments.
The approval, announced after a meeting with a Shell delegation led by its Global CEO, Wael Sawan, is designed to accelerate the project’s Final Investment Decision (FID) and unlock significant economic benefits.
Disciplined and Targeted Incentives
President Tinubu clarified that the incentives are not blanket concessions. They are specifically “ring-fenced and investment-linked,” tied to new capital investment, increased production, strong local content participation, and domestic value addition.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” the President stated, underscoring the project's urgency and strategic importance.
Expected Economic Impact
The Bonga South West project is projected to generate thousands of direct and indirect jobs, deliver substantial foreign exchange inflows, and provide sustained revenue for the government over its lifespan. It is also expected to deepen local capacity in offshore engineering, fabrication, and energy services.
A Signal of Renewed Investor Confidence
President Tinubu highlighted that Shell and its partners have invested nearly $7 billion in Nigeria over the past 13 months, citing this as evidence that the administration’s economic and energy reforms are yielding positive results.
Echoing this sentiment, Shell’s CEO, Wael Sawan, remarked on the notable improvement in Nigeria’s investment climate under President Tinubu, expressing growing confidence in the country as a long-term investment destination.
The President has directed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the formal gazetting of these incentives in line with Nigeria’s legal and fiscal frameworks.
Tags
News & politics