President Tinubu approves investment-linked incentives for Shell’s Bonga South West oil project, pushing for Final Investment Decision (FID) within his first term. The move promises thousands of jobs, forex inflows, and stronger local content in Nigeria’s energy sector
Tinubu Seals Incentives Deal with Shell for Game-Changing Bonga South West Oil Project – Demands FID Before 2027
President Bola Ahmed Tinubu has given the green light to targeted, investment-linked incentives aimed at fast-tracking Shell’s long-awaited Bonga South West deep-offshore oil project, signaling a major push to revive Nigeria’s upstream energy sector and attract fresh capital.
The approval came during a high-level meeting at the Presidential Villa in Abuja on January 22, 2026, where President Tinubu received a Shell delegation led by Global Chief Executive Officer Wael Sawan.
The President directed his Special Adviser on Energy, Mrs. Olu Verheijen, to handle the gazetting of these incentives in full compliance with Nigeria’s legal and fiscal frameworks.
“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
President Tinubu underscored the project’s strategic importance to Nigeria’s economy, highlighting its potential to generate thousands of direct and indirect jobs, drive substantial foreign-exchange earnings, and provide sustained revenue streams for the government over the project’s lifespan.
He further emphasized that the development would boost Nigerian involvement in offshore engineering, fabrication, logistics, and energy services—key pillars of local content growth.
The President reaffirmed his administration’s dedication to policy stability, regulatory predictability, and swift execution, describing these reforms as essential to rebuilding investor confidence and making Nigeria a top choice for major energy investments.
Tinubu pointed to Shell’s recent commitment of nearly US$7 billion in Nigeria over the past 13 months—particularly in Bonga North and related fields—as proof that the country’s economic and energy reforms are yielding tangible results.
In response, Shell CEO Wael Sawan praised the marked improvement in Nigeria’s investment climate under the Tinubu administration, stating that Shell is now more confident than ever in pursuing long-term investments in the country.
Additional reports indicate the Bonga South West project could attract up to US$20 billion in total investment, with capital expenditure nearing US$10 billion, positioning it as one of the largest upcoming deepwater developments in Nigeria.
The meeting also included senior executives from Shell’s global and Nigerian teams, alongside key Nigerian officials, underscoring the high stakes and collaborative spirit driving the initiative.
Sunday Dare, Special Adviser to the President (Media & Public Communication) – January 22, 2026. Read More
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