His Excellency, Bola Ahmed Tinubu, has approved a targeted fiscal incentive package 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 reposition Nigeria for a new era of deepwater oil production.
The decision marks a significant milestone in Nigeria’s efforts to attract strategic investments and accelerate sustainable economic growth within the energy sector.
The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as concessionaire, the Nigeria Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and the Chief Executive Officer of Shell, Wael Sawan.
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The process culminated in the President’s directive to fast-track key enablers required to move the strategic national asset toward FID following a courtesy visit by the Shell CEO. The approval signals renewed confidence in Nigeria’s policy direction and its determination to translate reform momentum into concrete investment outcomes.
Reacting to the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the decision as a major breakthrough after nearly two decades of stalled progress on the project.
“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,” Ojulari said.
He further emphasized that the milestone reinforces the company’s commitment to unlocking Nigeria’s energy potential through strategic partnerships and operational discipline.
“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,” he added.
The Bonga Southwest Aparo project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, effectively re-establishing the country as a premier destination for deepwater investments.
The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and the resolution of the 2021 dispute settlement agreement. These measures create a competitive investment framework designed to balance national value with attractive returns for investors.
As concessionaire, NNPC Limited worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor parties to develop alternative fiscal solutions that address structural constraints while safeguarding Nigeria’s long-term economic interests. The proposal underwent rigorous evaluation by the Nigeria Revenue Service before recommendations were submitted to the Presidency.
The milestone also underscores NNPC’s strategic pivot toward partnership-driven growth. By aligning with global energy majors like Shell and securing an enabling fiscal environment, the company is advancing the President’s investment reform agenda to deliver tangible outcomes, including job creation, increased government revenues, and strengthened energy security.
With presidential approval secured, NNPC Limited and its partners are now expected to progress toward the Final Investment Decision, triggering a multi-billion-dollar capital commitment that will transform Nigeria’s deepwater energy landscape.
Operated by Shell with other international oil companies in Nigeria as partners, the Bonga Southwest Aparo project is projected to generate more than 5,000 direct and indirect jobs. Upon completion, it will deliver approximately 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day, significantly boosting Nigeria’s production capacity and economic value from its deepwater resources.
