Nigeria’s oil and gas sector is set for a significant boost as Shell Companies in Nigeria announced plans to invest up to US$20 billion in the Bonga South West oil project, reinforcing renewed investor confidence in the country’s energy industry.
The development was disclosed on Thursday by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bashir Bayo Ojulari, following a meeting between President Bola Ahmed Tinubu and Shell Companies CEO, Wael Sawan, at the Presidential Villa in Abuja.
Ojulari described the proposed investment as a major economic catalyst, noting that it would stimulate job creation, revive dormant fabrication yards, and generate long-term value across the oil and gas supply chain. According to him, the scale of the investment reflects growing confidence in Nigeria’s economic direction under the Tinubu administration.
“What this shows is that we are seeing more confidence in Nigeria’s economy from investors,” Ojulari said. “Mr President has also committed to continuing to explore opportunities as they arise, ensuring Nigeria’s investment environment—particularly in the oil and gas industry—remains dynamic.”
He revealed that Shell has also indicated its intention to pursue an additional US$20 billion worth of investment opportunities in Nigeria over the next few years. Ojulari explained that Shell’s ability to attract global capital, despite intense international competition, is rooted in the company’s confidence in President Tinubu’s leadership.
“They have seen not just promises, but tangible actions—around transparency and commitment to the President’s agenda,” he said, adding that these factors have strengthened Shell’s resolve to deepen its footprint in Nigeria.
Ojulari disclosed that Shell has already begun discussions around its next major foreign direct investment, with the Bonga South West project at the centre of those plans. He said the project alone is expected to require close to US$10 billion in capital expenditure, in addition to substantial operating costs over its lifespan.
“When we talk about these big numbers, we need to clarify what they mean,” he said. “They translate to more jobs during the construction phase and greater participation for Nigerians. Many of our fabrication yards have been shut down for years due to a lack of projects. This will bring them back to life.”
He noted that Nigerians have made significant investments in these facilities, which have remained idle for too long, and expressed optimism that the project would reverse that trend. Beyond construction, Ojulari said the completion of the Bonga South West field would generate employment for 20 to 25 years, covering the operational life of the asset.
“That is where operating expenditure comes in—suppliers of materials, manpower, and maintenance services. This is a huge undertaking,” he said, explaining that Shell’s global chairman personally visited Nigeria to reaffirm the company’s long-term commitment to the country.
Ojulari outlined NNPCL’s role as concession holder for Nigeria’s production sharing contracts with international oil companies such as Shell, Chevron, ExxonMobil, and TotalEnergies. He said the company works closely with investors and relevant government institutions to develop viable proposals for approval.
“Our responsibility is to be the conscience of the government and Nigerians,” he said. “We ensure that assumptions and promises made are correct and authentic. We have been doing that and hope to conclude the process soon, with Mr President’s support for the final investment decision.”
According to Ojulari, the meeting with Shell was also an opportunity for the company to express appreciation to President Tinubu for his administration’s transparency and hands-on approach to improving Nigeria’s investment climate, while reaffirming Shell’s own commitment to continued investment.
He further highlighted Shell’s recent activities as evidence of this renewed confidence. Within the last year and a half, Shell completed the divestment of its onshore joint venture assets to Renaissance, a transaction Ojulari said sent a strong signal to the international community about Nigeria’s openness to investors.
“That transaction demonstrated the President’s commitment to enabling investor entry,” he said. “It restored confidence, including for Shell itself.”
Following the divestment, Ojulari said Shell took a final investment decision of US$5 billion for the Bonga North development. The company later approved an additional US$2 billion for a shallow-water gas development project.
“Overall, since Mr President announced incentives, Shell alone has invested over US$7 billion,” he said, underscoring the administration’s impact on unlocking capital inflows into the oil and gas sector.
With the proposed Bonga South West project and other opportunities under consideration, Ojulari said Nigeria is positioning itself once again as a competitive destination for large-scale energy investments, with far-reaching implications for employment, local capacity development, and long-term economic growth.