By Nkechi Eze
Nigeria has taken a major step toward unlocking large-scale investment in its oil and gas sector following presidential approval for fiscal incentives expected to enable a $20 billion Final Investment Decision (FID) on the Bonga Southwest Aparo deepwater project.
In a statement issued by the Chief Corporate Communications Officer of NNPC Limited, Andy Odeh, the development followed months of technical and commercial engagements involving the national oil company, the Nigeria Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell, Wael Sawan.
The approval by Bola Ahmed Tinubu is aimed at unlocking the long-awaited Final Investment Decision on the Bonga Southwest Aparo (BSWA) project, a strategic deepwater development expected to attract about $20 billion in foreign direct investment and significantly expand Nigeria’s offshore oil production capacity.
According to the statement, the approval followed the President’s directive during a courtesy visit by the Shell CEO, which called for accelerated action on the key enablers required to move the project to FID. The move is widely seen as a signal of renewed investor confidence in Nigeria’s energy reforms and policy direction.
Commenting on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a major breakthrough for the country’s oil and gas 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 the current administration’s reform-driven approach and sustained advocacy by NNPC Limited had helped break the deadlock.
According to him, the milestone also demonstrates NNPC’s commitment to unlocking Nigeria’s vast energy resources through strategic partnerships, innovation and strong execution.
Industry observers say the Bonga Southwest Aparo development will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, marking a significant moment in the country’s offshore energy sector.
The fiscal framework approved by the President includes an enhanced production tax credit and the resolution of issues surrounding the 2021 dispute settlement agreement, creating a more competitive investment environment that balances national interest with investor returns.
NNPC Limited worked closely with its partners, including Shell Nigeria Exploration and Production Company (SNEPCo), to develop alternative fiscal structures capable of addressing structural challenges while safeguarding Nigeria’s long-term economic interests. The proposed framework was subjected to detailed evaluation by the Nigeria Revenue Service before recommendations were submitted to the Presidency.
The Bonga Southwest Aparo project is expected to play a key role in strengthening Nigeria’s energy security and expanding national revenues while creating significant employment opportunities.
When completed, the project is projected to generate more than 5,000 direct and indirect jobs and produce about 150,000 barrels of crude oil per day alongside 140 million standard cubic feet of gas daily.
With presidential approval now secured, NNPC Limited and its international partners are expected to proceed toward the Final Investment Decision, a move that will trigger multi-billion-dollar capital investments and usher in a new phase of deepwater energy development in Nigeria.
