President Bola Tinubu has recently sanctioned the establishment of focused, investment-related incentives designed to endorse the planned Bonga Southwest deep-water oil project by Shell and its associates.
Additionally, the President instructed his Special Adviser on Energy, Mrs. Olu Verheijen, to assist in facilitating the process, adhering to Nigeria’s existing legal and fiscal systems, and assuring that the project is expected to be completed prior to the conclusion of his first term in 2027.
During a meeting with a delegation from Shell, led by its Global CEO, Wael Sawan, Tinubu commented that these incentives are carefully considered, specific, and competitive on a global scale, aimed at enticing fresh investments without impinging on government revenues.
“These incentives are not broad concessions. They are specifically targeted and investment-related, emphasizing new capital and incremental output, robust local content delivery, and national value addition,” he remarked.
“The expectation is clear: Bonga Southwest is to achieve a Final Investment Decision (FID) within this administration's first term,” Tinubu emphasized.
The President highlighted that the Bonga initiative is vital for Nigeria's economy, with the potential to create numerous direct and indirect employment opportunities, generate substantial foreign exchange revenues, and provide enduring government income throughout the project's lifespan.
He further noted that the project would enhance Nigerian participation in offshore engineering, fabrication, logistics, and energy services sectors.
Tinubu reaffirmed his government’s dedication to maintaining policy continuity, regulatory certainty, and promptness, stressing that these changes are essential to reinstating investor confidence and establishing Nigeria as a prime location for substantial energy investments.
Moreover, he pointed out that Shell and its partners had injected nearly $7 billion into Nigeria within the last year, especially towards the Bonga North and HI projects, interpreting this as clear evidence that the country’s economic and energy-sector reforms are yielding positive outcomes.
Earlier, Shell’s CEO, Sawan, remarked on the significant improvement in Nigeria’s investment environment under the Tinubu government, asserting that Shell is becoming increasingly assured of Nigeria as a favorable long-term investment location.
In a conversation with reporters following their meeting, the Group CEO of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Bayo Ojulari, revealed that this marked Sawan's inaugural visit to the President, underscoring the effective influence of last year's executive orders aimed at attracting investments.
Ojulari stated: “Post-PIA, we recognized the need for additional incentives to draw investments, particularly because of the global competition for capital. Many other nations, including various African nations, Guyana, and countries in the Far East, are modifying their policies dynamically to entice investments.”
“One of the significant measures Mr. President took was to declare those executive orders to introduce additional incentives for attracting investments. Consequently, Shell has managed to accomplish three major milestones over the last, I would estimate, one and a half years.”
“He highlighted that Shell completed its onshore joint venture asset transactions, which were transferred to Renaissance. Finalizing that transaction demonstrated Mr. President’s commitment to allowing investors to bring in funds and providing them the freedom to exit if necessary, given that the investment landscape is continuously evolving.”
“This action has instilled confidence in the international arena, including Shell. Following this divestment process, Shell took a final investment decision of $5 billion for the Bonga North development.”
“Later, they made another investment decision last year for the Shallow Water Feed, referred to as HI, for gas development, amounting to an additional $2 billion. In total, since Mr. President announced this incentive, Shell alone has invested more than $7 billion, indicating the potential for significant replicability.”
Ojulari went on to mention that Shell has also committed to additional investments worth $20 billion in Nigeria over the forthcoming years. He assured that NNPC would persist in collaborating with Shell and other international stakeholders to achieve agreed objectives.
He stated: “Shell has also purposed to convey to the President their intention to pursue another $20 billion opportunities in the coming years, expressing their capability to realize this and mobilize these resources.”
“To that extent, discussions are currently ongoing regarding the next project for which they intend to arrive at a final investment decision. This encompasses the Bonga Southwest project, potentially involving almost $10 billion in capital investment alongside operating expenses.”
He clarified that this initiative would translate to increased job opportunities for Nigerians, noting that numerous fabrication yards that have been dormant for an extended period would become operational due to this planned project.
“Many Nigerians have heavily invested in fabrication yards that have remained unutilized for years. Completing this project would ensure employment for the next 20, 25, or even 30 years for the duration of the endeavor,” he elaborated.
Meanwhile, Dr. Wale Edun, the Finance Minister and Coordinating Minister of the Economy, stated that Nigeria is amplifying its efforts to attract foreign direct investments in pursuit of heightened productivity, job creation, and expanded export capabilities.
In a conversation with ARISE News at the World Economic Forum (WEF) in Davos, Edun mentioned that the federal government aims to establish Nigeria as a trustworthy destination for long-term capital by capitalizing on reforms and enhancing global economic diplomacy.
He reiterated that Nigeria's presence in Davos was intentional, aimed at claiming its share of global capital while bolstering confidence in the country’s investment landscape.
He noted: “Mr. President’s global economic diplomacy is already yielding positive results. For example, just last week, Nigeria formalized a Comprehensive Economic Partnership Agreement with the UAE. These frameworks foster an environment conducive to attracting capital, ensuring predictable and reliable investment climates where investors can anticipate clear returns.”
“Of course, they seek profitable returns on their investments, and we are equally interested in benefiting from this.”
“We are also preparing to unveil various initiatives similar to those other countries are pursuing. That is our objective here: to draw investments into Nigeria and advocate for both foreign investors and Nigerians based abroad and within the nation.”
Edun also commented on global geopolitical trends and their relevance to Nigeria’s relationships with international investors, including recent statements made by former U.S. President Donald Trump during Davos.
He added: “For Nigeria, the most critical factor is that global trade and output continue their upward trajectory. We operate an open economy and adhere to free-market ideologies. Presently, Africa contributes a mere 3 percent to global trade, accounting for only about 2.5 percent of worldwide output. As these figures advance, possibilities for exports will increase.”
“Nigeria currently exports nearly $4 billion worth of goods to the United States. Although this amount is relatively modest, it is crucial, and we wish to see its growth. Provided that global trading frameworks do not tighten excessively, what President Trump articulated was largely optimistic and encouraging for us.”
Furthermore, he emphasized that for Nigerians residing domestically, the ultimate aim of these policies is to achieve fast, sustained, and inclusive growth that generates employment, elevates wages, and reduces inflation.
“What we are doing here directly relates to that objective. We are concentrating on re-industrializing Nigeria, especially within the manufacturing sector. With the Dangote Refinery and other privately owned refineries now operational, Nigeria can access petrochemicals and other industrial raw materials.
This strategically positions us to invite investors to produce locally for our substantial domestic market and for exports. This process creates jobs, enhances productivity, and is pivotal in fostering economic growth,” he underscored.
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