President Bola Tinubu has approved investment-linked incentives to support Shell Plc’s proposed Bonga South-west deep-offshore oil project.
The move aims to attract new capital, boost local content, and increase government revenue.
Persecondnews reports that the incentives, described as disciplined and globally competitive, are expected to create thousands of jobs, generate significant foreign exchange earnings, and provide long-term government revenue.
Mr. Sunday Dare, Special Adviser to the President on Media and Public Communication, in a statement on Thursday, said the incentives are ring-fenced and focused on new capital and incremental production.
“The 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,” Dare said
President Tinubu noted that the project is vital to Nigeria’s economy and expects a Final Investment Decision within his first term.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” he said.
Shell’s Global CEO, Wael Sawan, praised Nigeria’s improved investment climate under Tinubu’s administration.
“Nigeria’s investment climate has significantly improved under the Tinubu administration, adding that Shell is increasingly confident about Nigeria as a long-term investment destination,” Sawan said.
The project is expected to strengthen Nigerian involvement in offshore engineering, fabrication, logistics, and energy services.
Shell and its partners have invested $7 billion in Nigeria in the past 13 months, particularly in Bonga north and HI.
Sawan attributed the investment to Nigeria’s economic and energy-sector reforms, saying, “Shell is increasingly confident in Nigeria as a destination for long-term investment.”
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