Bola Ahmed Tinubu has approved a targeted fiscal incentive package to unlock the Final Investment Decision (FID) for the Bonga Southwest Aparo deepwater project. The decision is expected to attract about $20 billion in foreign direct investment and revive one of Nigeria’s most significant offshore oil developments. According to Andy Odeh of NNPC Limited, the move signals renewed investor confidence in Nigeria’s reform agenda and its commitment to converting policy reforms into concrete investment outcomes.
Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, described the approval as a major breakthrough for a project that had remained stalled for nearly two decades. The fiscal package includes an enhanced Production Tax Credit and the resolution of a 2021 dispute settlement agreement, creating a more competitive framework for investors while safeguarding national value.
Operated by Shell Nigeria Exploration and Production Company in partnership with international oil companies, the project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily. It is also projected to generate over 5,000 jobs and represents the first Final Investment Decision on a Nigerian deepwater production sharing contract asset since 2008.
