Abuja: President Bola Tinubu has granted approval for a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project. This development marks a significant milestone in Nigeria’s efforts to attract strategic investments and foster sustainable economic growth.
According to News Agency of Nigeria, the project is expected to attract approximately $20 billion in Foreign Direct Investment, positioning Nigeria for a new era in deepwater production. The approval comes after 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 Shell CEO Mr. Wael Sawan.
The development follows a directive from President Tinubu during a courtesy visit by Shell CEO Mr. Wael Sawan, aimed at fast-tracking the necessary enablers to move this strategic national asset to FID. Group Chief Executive Officer of NNPC Limited, Mr. Bashir Bayo Ojulari, highlighted that this signals renewed confidence in Nigeria’s policy direction and transforms reform momentum into tangible investment outcomes.
Mr. Ojulari stated that the Bonga Southwest project is the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008, reaffirming Nigeria as a premier deepwater investment destination. The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and the resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
NNPC Limited, as the concessionaire, collaborated closely with SNEPCo and the broader contractor party to develop alternative fiscal solutions addressing structural constraints while protecting Nigeria’s long-term interests. The approval underwent rigorous evaluation by the NRS before recommendations were submitted to the Presidency.
Mr. Ojulari emphasized that this milestone reinforces NNPC’s strategic shift toward partnership-driven growth. By aligning with global majors like Shell and securing an enabling fiscal environment, NNPC Ltd is executing the President’s investment reform agenda into tangible outcomes, including jobs, revenues, and energy security for Nigerians. With Presidential approval secured, NNPC Limited and its partners will progress toward FID, initiating the multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape.
The Bonga Southwest Aparo project, operated by Shell with all International Oil Companies (IOCs) in Nigeria as partners, is set to create over 5,000 direct and indirect jobs.