Tinubu approves incentives to unlock jobs, FX inflows from Shell’s Bonga Southwest project

President Bola Ahmed Tinubu has approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep-offshore oil project by Shell Plc and its partners, in a move aimed at unlocking jobs, boosting foreign-exchange inflows and accelerating new capital investment in Nigeria’s energy sector.

The President also directed the Special Adviser on Energy, Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.

Speaking while receiving a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, Tinubu said the incentives were carefully designed to attract fresh investments without eroding government revenues.

According to a statement by his Special Adviser on Media and Public Communication, Sunday Dare, the President said: “These incentives are not blanket concessions. They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”

He added that the administration expects the Bonga South West project to reach a Final Investment Decision (FID) within his first term in office.

“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” Tinubu stated.

The President described the project as strategic to Nigeria’s economy, noting that it has the potential to create thousands of direct and indirect jobs, generate substantial foreign-exchange inflows and deliver sustained government revenues over its lifespan. 

He said the development would also deepen Nigerian participation in offshore engineering, fabrication, logistics and other energy-related services.

Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty and speed, stressing that these elements are critical to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investments.

He further acknowledged that Shell and its partners have invested nearly $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, describing the inflows as evidence that ongoing economic and energy-sector reforms are yielding tangible results.

Sawan said Nigeria’s investment climate had improved significantly under the Tinubu administration, adding that Shell was increasingly confident in the country as a destination for long-term energy investments.

The Shell delegation included senior executives from the company’s global and Nigerian leadership teams.

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