President Bola Ahmed Tinubu has approved a targeted fiscal incentive package aimed at unlocking the long-delayed Bonga Southwest Aparo Project, a move expected to attract about $20 billion in foreign direct investment into Nigeria’s oil and gas sector.
The approval, announced Tuesday by Nigerian National Petroleum Company Limited, is expected to clear the path for the long-awaited Final Investment Decision (FID) on the offshore project, which has remained stalled for nearly two decades.
The Bonga Southwest Aparo project is operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell plc, in partnership with international oil companies and Nigeria’s national oil firm.
NNPC said the presidential approval followed months of negotiations involving key stakeholders, including the Federal Inland Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.
In a statement signed by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the company described the decision as a major step toward restoring investor confidence in Nigeria’s deepwater petroleum sector.
The fiscal framework approved by the President includes an enhanced production tax credit and the resolution of a 2021 dispute settlement agreement, measures designed to improve the investment climate while protecting Nigeria’s long-term revenue interests.
Reacting to the development, NNPC Group Chief Executive Officer Bayo Ojulari said the approval marks a turning point for a project that had been stalled for nearly 20 years.
“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,” he said.
According to NNPC, the Bonga Southwest Aparo project will become Nigeria’s first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008, potentially signalling renewed investor interest in offshore exploration.
Once operational, the field is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, while generating more than 5,000 direct and indirect jobs across the oil and gas value chain.
The project forms part of the Federal Government’s strategy to attract over $100 billion in new investments into Nigeria’s energy sector by 2030, particularly in deepwater exploration, gas development and energy infrastructure.
Nigeria’s deepwater basins remain among Africa’s most productive, with fields such as Bonga Oil Field, Erha Oil Field and Agbami Oil Field contributing significantly to national oil output.
However, new offshore project approvals have slowed in recent years due to regulatory delays, rising costs and shifting global energy investment priorities.
Located offshore in the Niger Delta, the Bonga Southwest Aparo project is expected to build on the success of the original Bonga field, which began production in 2005. With the fiscal framework now secured, NNPC and its partners are expected to move toward the Final Investment Decision, triggering the multi-billion-dollar capital investment needed to develop the field.
