- Nigeria approves targeted, performance-based incentives for Shell’s Bonga South West offshore project.
- The government expects a Final Investment Decision within President Tinubu’s first term.
Nigeria has approved incentives for the Bonga South West project to accelerate offshore oil investment and production growth. Accordingly, President Bola Tinubu endorsed targeted, investment-linked measures for Shell’s deepwater development. The approval followed a high-level meeting with Shell’s Chief Executive Officer, Wael Sawan. Consequently, the decision reinforces Nigeria’s renewed push to attract upstream investment.
Importantly, the incentives align with broader regulatory reforms across the oil and gas sector. Therefore, the government aims to boost production while strengthening investor confidence. Unlike past approaches, the incentives will not apply universally. Instead, they will focus strictly on new capital deployment and incremental output.
President Tinubu clarified that the incentives remain ring-fenced and performance-driven. Furthermore, he stressed strong local content delivery as a core condition. As a result, the measures will support domestic participation alongside foreign investment. He also set a clear expectation for timely project execution.
According to the President, Shell must reach a Final Investment Decision within the administration’s first term. Consequently, the government expects rapid progress on the project. This stance signals urgency in restoring offshore production momentum. Moreover, it reflects Nigeria’s determination to remain Africa’s leading crude producer.
Meanwhile, Shell continues to deepen its offshore commitments in Nigeria. Previously, the company reached a Final Investment Decision on the Bonga North project in 2024. That move helped sustain output at the Bonga Floating Production Storage and Offloading facility. Since 2023, Shell has reportedly invested about $7 billion across Bonga-related projects.
In addition, Nigeria’s Special Adviser on Energy, Olu Arowolo Verheijen, highlighted Shell’s long-term confidence. She explained that the recent visit reaffirmed the company’s commitment to Nigeria’s energy future. Notably, Shell disclosed plans to invest an additional $20 billion in the Bonga South West project. However, the company has yet to confirm the figure publicly.
Last year, Shell also increased its stake in the Bonga oilfield. Specifically, it acquired additional interest from TotalEnergies, raising its share to 65 per cent. Consequently, this move underlined Shell’s offshore focus following the divestment of onshore assets. Those onshore assets were sold to a consortium of local and international firms.
Overall, the Bonga South West project incentives reflect Nigeria’s evolving investment strategy. Therefore, the government seeks measurable gains in production and economic returns. Additionally, the approach prioritises accountability and clear investment outcomes. As reforms continue, offshore developments remain central to Nigeria’s energy roadmap.