Abuja: President Bola Tinubu has approved a targeted fiscal incentive to unlock the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.
This marks a key step in attracting strategic investments and boosting economic growth in Nigeria.
The project is set to attract $20 billion in Foreign Direct Investment, positioning Nigeria for a new chapter in deepwater production and economic growth.
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.
The development is a culmination of the president’s directive issued during a courtesy visit by Shell CEO, Mr Wael Sawan, to fast-track the enablers required to move this strategic national asset to FID.
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Mr Bashir Ojulari, said it signalled renewed confidence in Nigeria’s policy direction.
This development turns ongoing reforms into concrete investment and national benefits.
“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,” he said.
Ojulari said the Bonga Southwest project would be the first FID on a Nigerian Deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination.
He said the fiscal package approved by President Tinubu included an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
He said that NNPC Limited, as the concessionaire, worked closely with SNEPCo and the broader contractor parties to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests.
According to him, the approval was granted after a rigorous evaluation by the NRS and submission of recommendations to the Presidency.
“This milestone reinforces NNPC’s strategic pivot toward partnership-driven growth.
“By aligning with global majors like Shell and securing the enabling fiscal environment, NNPC Ltd is translating the President’s investment reform agenda into tangible outcomes—jobs, revenues, and energy security for Nigerians.
“With Presidential approval secured, NNPC Limited and its partners will now progress toward FID in the coming months, with project execution expected to commence shortly after, ultimately targeting first oil production within a defined project schedule that will be announced following FID,” Ojulari said.
The Bonga Southwest Aparo project, operated by Shell with all IOCs as partners, is expected to generate 5,000 new jobs and boost oil and gas output.
He said it would also deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.
