President Bola Ahmed Tinubu has given his approval for targeted fiscal incentives aimed at unlocking the Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project. This approval signifies a crucial step in Nigeria’s efforts to attract significant investments and boost sustainable economic growth. The project is anticipated to draw approximately $20 billion in Foreign Direct Investment, positioning Nigeria for a new era in deepwater production.
According to a statement signed by Andy Odeh, Chief Corporate Communications Officer for NNPC Limited, this approval follows “months of intensive technical and commercial negotiations” involving NNPC Limited, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and Shell CEO Mr. Wael Sawan. The decision is the culmination of a directive from President Tinubu to fast-track the necessary enablers for this strategic national asset to reach FID, signaling “renewed confidence in Nigeria’s policy direction” and its commitment to converting reform momentum into tangible investment results.
Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, commented on the development, stating, “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.” Ojulari further affirmed, “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.”
The Bonga Southwest project marks the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing the country as a prime deepwater investment destination. The fiscal package approved by President Tinubu includes an “enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement,” creating a competitive framework that balances national value with investor returns.
NNPC Limited collaborated closely with SNEPCo and the contractor party to develop alternative fiscal solutions that address structural constraints while safeguarding Nigeria’s long-term interests. The approval was granted after rigorous evaluation by the National Revenue Service and subsequent recommendations to the Presidency.
This milestone underscores NNPC’s strategic shift towards partnership-driven growth. By collaborating with global majors like Shell and securing a supportive fiscal environment, NNPC Ltd is translating the President’s investment reform agenda into tangible outcomes, including “jobs, revenues, and energy security for Nigerians.”
With Presidential approval now secured, NNPC Limited and its partners will proceed towards FID, which will trigger a multi-billion-dollar capital commitment designed to transform Nigeria’s deepwater landscape and deliver lasting value to the nation. Operated by Shell with all International Oil Companies (IOCs) in Nigeria as partners, the Bonga Southwest Aparo project is projected to generate over 5,000 direct and indirect jobs and deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.
