Shell Plc has announced plans to deepen its presence in Nigeria with a proposed $20 billion investment, citing improved investor confidence and policy stability under President Bola Tinubu’s administration.

Speaking after a meeting with President Tinubu at the Presidential Villa in Abuja, Shell Chief Executive Officer Wael Sawan said the oil major’s renewed commitment reflects confidence in Nigeria’s economic direction and leadership. He credited the government’s reform agenda with creating a more predictable and competitive investment environment.

According to Sawan, Shell and its partners have already made significant commitments in Nigeria, including a $5 billion investment in Bonga North, $2 billion in HI, and additional funding for gas supply projects supporting Nigeria LNG Limited. He noted that for long-term investors such as Shell, which plans projects spanning decades, stability has become a critical factor in capital allocation decisions.

“Your leadership and vision have created an investment climate that has encouraged us to commit capital in Nigeria, particularly when compared with opportunities elsewhere in the world,” Sawan said.

As part of its expansion strategy, Shell recently increased its stake in Oil Mining Lease 118, also known as the Bonga Block, following the acquisition of TotalEnergies’ interest. The company is also advancing plans for the Bonga South West deep offshore project, which could attract up to $20 billion in foreign direct investment if it reaches Final Investment Decision, with roughly half of that amount expected as direct capital expenditure.

Sawan described Shell’s renewed engagement as a reversal from previous years when investment activity had slowed, attributing the shift to policy clarity and targeted incentives introduced by the current administration. He also commended the professionalism of President Tinubu’s economic and energy team, saying it had strengthened confidence among Shell and its partners.

In response, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West project. He directed his Special Adviser on Energy, Olu Arowolo-Verheijen, to ensure the incentives are formally gazetted in line with Nigeria’s existing legal and fiscal frameworks.

The President emphasised that the measures are not blanket concessions but project-specific incentives tied to concrete investment outcomes, aimed at unlocking large-scale offshore developments while safeguarding national interests. The move aligns with broader efforts to attract capital into Nigeria’s energy sector, including offshore oil and gas projects critical to export revenues and domestic supply.