President Bola Tinubu has approved the gazetting of targeted, investment-linked incentives to bolster Shell and its partners' proposed Bonga Southwest deep-offshore oil project. This strategic move aims to accelerate the project's Final Investment Decision (FID) before the end of his first tenure in 2027, with the President directing his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the process within Nigeria's existing legal and fiscal frameworks. These incentives are designed to be disciplined, targeted, and globally competitive, specifically attracting new capital and incremental production while ensuring strong local content delivery and in-country value addition, without undermining government revenues.

The Bonga Southwest project is deemed strategic to Nigeria's economy, holding the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over its lifespan. Furthermore, it is expected to deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services. President Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed, considering these reforms critical for restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.

Shell’s Global Chief Executive Officer, Wael Sawan, echoed this sentiment, stating that Nigeria's investment climate has remarkably improved under the Tinubu administration, making Shell increasingly confident in Nigeria as a destination for long-term investment. He highlighted that Nigeria now stands out as one of the most attractive destinations for capital allocation within Shell’s global portfolio. Shell and its partners have already invested nearly $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, which Sawan described as a clear indication that Nigeria’s economic and energy-sector reforms are yielding results.

Following the President's executive orders last year, which provided additional incentives to attract investments in a globally competitive environment, Shell has made significant moves. According to Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), these orders enabled Shell to complete its transaction of onshore JV assets to Renaissance, fostering confidence in the international community regarding Nigeria's investment landscape. Subsequently, Shell made a final investment decision of $5 billion for the development of Bonga North and another $2 billion for the shallow water gas development project, HI.

Sawan disclosed Shell's plans for a proposed Bonga Southwest development, which could attract up to $20 billion in foreign direct investment if it reaches FID. This substantial investment would be split between capital expenditure and operational spending, potentially ranking among the largest energy projects globally. Shell has already commenced pre-Front-End Engineering Design (pre-FEED) work on the project, aiming for an FID by 2027, contingent on regulatory approvals and the finalization of fiscal incentives. This commitment signifies an additional $20 billion opportunities over the next couple of years, with the Bonga Southwest project alone involving close to $10 billion in capital and substantial operating expenses, promising revitalization for fabrication yards and long-term employment for Nigerians.

While Shell has been a dominant operator in Nigeria's oil and gas industry for decades, its operations have also faced criticism regarding environmental degradation and social unrest in the Niger Delta, leading to lawsuits and international scrutiny. However, the company's recent divestment from onshore assets and focus on deep offshore projects marks a strategic shift within this improved investment climate.

In parallel with these developments, Dr. Wale Edun, Nigeria's Finance Minister and Coordinating Minister of the Economy, emphasized at the World Economic Forum (WEF) in Davos that Nigeria is intensifying its push for foreign direct investment to boost productivity, create jobs, and expand export capacity. He highlighted Nigeria's efforts to position itself as a credible destination for long-term capital through reforms and global economic diplomacy, citing the Comprehensive Economic Partnership Agreement with the UAE as an example. Edun reiterated that Nigeria's objective is rapid, sustained, and inclusive growth, focusing on re-industrializing the nation, particularly manufacturing, leveraging resources like petrochemicals from new refineries such as Dangote Refinery to attract investors for local production and exports.

President Tinubu assured Shell of the federal government’s commitment to transparency, competitiveness, and policy consistency, acknowledging Nigeria's need to actively compete with other oil-producing nations like Guyana for global capital. He pledged that all approved incentives would be delivered and applied consistently, emphasizing that Nigeria's greatest resource remains its people and that developing local talent is crucial for achieving long-term value from the country's natural resources.