President 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 into Nigeria’s oil and gas sector.
The approval marks a major milestone in Nigeria’s efforts to revive large-scale deepwater investments and reinforce the country’s position as a leading destination for upstream oil and gas development in Africa. Once the Final Investment Decision is taken, the project is expected to open a new phase of deepwater production and significantly boost Nigeria’s long-term energy output.
The development followed months of technical and commercial negotiations involving NNPC Limited, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell, Wael Sawan.
According to officials familiar with the process, the negotiations were triggered by a directive issued by President Tinubu during a meeting with Shell’s leadership, where he instructed relevant government agencies to fast-track policy and fiscal enablers required to move the strategic national asset to the investment decision stage.
Reacting to the development, the Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, described the approval as a significant breakthrough for Nigeria’s energy sector.
“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,” Ojulari said.
He noted that the Bonga Southwest project had remained stalled for nearly two decades but had now gained renewed momentum under the current administration’s reform agenda.
“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,” he added.
Ojulari further stated that the development reinforces NNPC Limited’s commitment to unlocking Nigeria’s vast energy potential through strategic partnerships, innovation, and disciplined project execution.
The Bonga Southwest Aparo development will represent the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, a milestone widely seen as signalling renewed investor confidence in Nigeria’s upstream petroleum sector.
The fiscal framework approved by the President includes an enhanced Production Tax Credit and the resolution of issues related to the 2021 dispute settlement agreement, measures designed to improve the commercial viability of the project while safeguarding Nigeria’s long-term revenue interests.
NNPC Limited, acting as concessionaire, worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor parties to develop fiscal solutions capable of addressing long-standing structural constraints that had delayed the project.
Industry analysts say the approval could mark a turning point for Nigeria’s deepwater investment landscape, which has faced delays in recent years amid regulatory uncertainty and shifting global capital flows.
When completed, the Bonga Southwest Aparo project—operated by Shell with international oil companies as partners—is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
The development is also projected to generate over 5,000 direct and indirect jobs during construction and operational phases.
With the presidential approval secured, NNPC Limited and its partners are now expected to advance toward the Final Investment Decision, triggering the multi-billion-dollar capital commitment required to transform one of Nigeria’s most significant deepwater oil assets into production.
