President Bola Tinubu has approved a fiscal incentive package aimed at unlocking the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
According to a statement by the Nigerian National Petroleum Company Limited (NNPC Ltd) on Tuesday, the development is expected to attract about $20 billion in Foreign Direct Investment (FDI) and revive large-scale offshore oil investments in the country.
The state oil company noted the approval is designed to resolve long-standing fiscal and commercial bottlenecks that stalled the project for nearly two decades and pave the way for a major expansion of Nigeria’s deepwater oil production.
The Bonga Southwest Aparo development, operated by Shell through its Nigerian deepwater subsidiary, is expected to deliver about 150,000 barrels of crude oil per day and 140 million standard cubic feet (Scf) of gas daily once fully operational.
According to the statement, the presidential approval followed months of technical and commercial engagements involving the national oil company, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the global leadership of Shell.
“His Excellency, President Bola Ahmed Tinubu, has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, marking a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth. The project is estimated to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater production.
“The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO, Mr. Wael Sawan,” it stated.
According to the statement, it represents the culmination of the President’s directive, issued during a courtesy visit by Shell CEO, Sawan, to fast-track the enablers required to move this strategic national asset to FID.
The national oil company also said it signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes.
Explaining further, the NNPC said the approval represented a significant milestone in Nigeria’s effort to reposition itself as a competitive destination for global energy investment, particularly in the capital-intensive deepwater segment.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the development as a major breakthrough for the country’s oil and gas sector.
He noted that the project had remained stalled for almost two decades due to fiscal and commercial uncertainties but said the latest approval reflected the government’s commitment to unlocking strategic investments.
Ojulari added that the milestone underscored the company’s commitment to leveraging partnerships with international oil companies to unlock Nigeria’s vast hydrocarbon potential.
“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 NNPC GCEO stressed.
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With presidential approval now secured, NNPC and its partners are expected to move toward the formal FID, which would trigger the full-scale capital deployment required to develop the offshore field.
The Bonga Southwest Aparo project will become the first deepwater final investment decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008, signalling renewed confidence among international investors in the country’s policy environment.
Once the final investment decision is taken by the project partners, the multi-billion-dollar development is expected to transform Nigeria’s deepwater production profile while creating significant economic benefits.
NNPC estimates that the project will generate over 5,000 direct and indirect jobs during construction and operations.
It could also signal the beginning of a new cycle of offshore investments in Nigeria, especially as global oil companies increasingly seek stable fiscal environments before committing capital to large deepwater projects.
