The approval, announced Thursday in Abuja by the President’s Special Adviser on Media and Public Communication, Mr Sunday Dare, is aimed at accelerating Shell’s Final Investment Decision (FID) on the project and unlocking new capital inflows into the energy sector.
According to the Presidency, the incentives are designed to fast-track development of the Bonga South-West project, which the administration views as critical to increasing crude oil production, creating jobs and strengthening foreign exchange earnings. President Tinubu stressed that the measures are narrowly tailored and not open-ended concessions.
“These incentives are not blanket concessions. They are ring-fenced and investment-linked, focused on new capital, incremental production, strong local content delivery and in-country value addition,” the President said.
Tinubu added that he expects the project to reach a Final Investment Decision within the first term of his administration, noting that the initiative aligns with the government’s broader objective of restoring investor confidence in Nigeria’s oil and gas industry while driving sustainable growth across the energy value chain.
The President disclosed that Shell and its partners have invested nearly $7 billion in Nigeria over the past 13 months, pointing to ongoing projects such as Bonga North and the HI Gas project as evidence that recent economic and energy-sector reforms are beginning to yield results.
The Bonga South-West/Aparo project has a long development history. In 2019, following the execution of a Heads of Terms agreement with the Nigerian National Petroleum Corporation (NNPC), Shell Nigeria Exploration and Production Company (SNEPCo) invited bids and later issued an Invitation to Tender to contractors for the field’s development. The project was estimated to cost about $10 billion, with an expected production capacity of 225,000 barrels of oil per day, although first oil originally projected for 2021–2022 was delayed.
In recent years, Shell has signaled renewed commitment to Nigeria’s deep-water assets. In 2024, the company announced plans to extend the operational life of the Bonga Floating Production, Storage and Offloading (FPSO) vessel by 15 years. In 2025, SNEPCo, in partnership with Sunlink Energies and Resources Limited, took a final investment decision on the HI Gas Project offshore Nigeria.
Shell said the HI Gas project, once completed, will supply up to 350 million standard cubic feet of gas per day to Nigeria LNG, equivalent to about 60,000 barrels of oil equivalent at peak production. Shell holds a 25.6 per cent stake in NLNG.
The company also reached a final investment decision on the Bonga North project in December 2024 and recently increased its equity stake in the Bonga field, reinforcing its stated intention to remain a disciplined, long-term investor in Nigeria through its deep-water and integrated gas operations.
With the newly approved incentives, the Tinubu administration is betting that Bonga South-West will move from prolonged planning to execution, marking a significant milestone in efforts to revitalise Nigeria’s offshore energy development.