President Bola Ahmed Tinubu has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.
The move, which is expected to attract about $20 billion in Foreign Direct Investment (FDI), positions Nigeria for a new era of deepwater production.
This development was confirmed in a statement signed by Andy Odeh, Chief Corporate Communications Officer at NNPC Limited, on Tuesday.
The decision, the statement noted, signals renewed confidence in Nigeria’s policy direction and its commitment to translating reform momentum into tangible investment outcomes.
NNPC Limited’s Group Chief Executive Officer, Engr. Bashir Bayo Ojulari described the approval as a testament to effective leadership and disciplined execution:
“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. This is what partnership, persistence, and policy clarity can achieve.”
“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence.”
The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
The statements reflect the alignment between government reforms and corporate execution in advancing Nigeria’s deepwater oil ambitions.
The Bonga Southwest project has been awaiting a green light for nearly two decades, with previous attempts stalled due to fiscal and regulatory constraints.
Operated by Shell and partnered by all International Oil Companies (IOCs) in Nigeria, the project represents a critical component of Nigeria’s deepwater energy portfolio.
NNPC Limited, as concessionaire, collaborated closely with SNEPCo and contractors to develop fiscal solutions that address structural constraints while safeguarding Nigeria’s long-term interests.
The proposals underwent rigorous evaluation by the National Revenue Service before submission to the Presidency.
The Bonga Southwest Aparo project, the NNPC Ltd noted, is poised to redefine Nigeria’s deepwater investment landscape.
It will be the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008, signaling renewed confidence for global investors. Key expected outcomes include:
Creation of over 5,000 direct and indirect jobs.
Production of 150,000 barrels per day of crude oil and delivery of 140 million standard cubic feet per day of gas.
In January, President Tinubu approved the gazetting of targeted, investment-linked incentives to support Shell’s proposed Bonga South-West deep-offshore oil project
Following this, the decision had already generated significant interest across Nigeria’s energy sector, even as the specifics of the incentives remain under wraps weeks after the announcement.
In 2019, following the execution of the Heads of Terms (HoT) by the NNPC Ltd, Shell Nigeria Exploration and Production Company (SNEPCo) invited interested bidders for one of its oilfields.
In 2024, Shell announced its plan to extend the operational lifespan of its Bonga Floating Production, Storage, Offloading (FPSO) vessel by an additional 15 years.
