Tinubu okays $20b FID on Bonga deepwater project

After 18 years of deadlock, President Bola Tinubu, has approved a targeted fiscal incentive designed to unlock the long awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.

With the approval, the Bonga Southwest project becomes the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008 and re-establishes the country as a premier 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.

This was contained in a statement endorsed by the NNPC Limited Chief Corporate Communications Officer, Andy Odeh, yesterday. The statement said that the feat marks a milestone in the country’s ongoing drive to attract strategic investments and accelerate sustainable economic growth.

The project is estimated to attract about $20 billion in Foreign Direct Investment (FDI) and position Nigeria for a new era of deepwater production. Besides, the Bonga Southwest Aparo project, operated by Shell with all IOCs in Nigeria as partners, will create 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.

It explained that with Presidential approval secured, NNPC Limited and its partners will now progress toward FID, triggering the multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape and deliver enduring value to the nation.

Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, stated: “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.”

According to Ojulari, the feat further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence.

He explained that NNPC Limited, as concessionaire, worked closely with SNEPCo and the broader contractor party to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests. The approval was granted rigorous evaluation by the National Revenue Service and submission of recommendations to the Presidency.

The NNPC helmsman further disclosed that it is a further reinforcement of NNPC’s strategic pivot toward partnership-driven growth. By aligning with global majors like Shell and securing the enabling fiscal environment, he added, NNPC Ltd is translating the President’s investment reform agenda into tangible outcomes—jobs, revenues, and energy security for Nigerians.

The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO Wael Sawan.

“It represents the culmination of the President’s directive, issued during a courtesy visit by Shell CEO,  Wael Sawan, to fast-track the enablers required to move this strategic national asset to FID. It signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes,” the statement noted.

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