President Bola Ahmed Tinubu has approved a targeted fiscal incentive package designed to unlock one of the biggest energy investments in Nigeria's history — the long-delayed Bonga Southwest Aparo deepwater project, which is expected to attract approximately $20 billion in foreign direct investment into Nigeria's oil and gas sector.
The approval, announced by the Nigerian National Petroleum Company Limited (NNPCL) on Tuesday March 10, 2026, is expected to pave the way for the long-awaited Final Investment Decision (FID) on the offshore project — a decision that has been blocked for nearly two decades due to fiscal uncertainties and policy disagreements between the government and international oil companies.
Once the FID is reached, the Bonga Southwest Aparo project will become Nigeria's first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008 — a milestone that signals a major revival of investor confidence in Nigeria's offshore energy sector.
The story was widely reported by Punch Nigeria, Voice of Nigeria, Reuters, OilPrice.com, and other major energy and news outlets, all citing official statements from NNPCL Group Chief Executive Officer Bayo Ojulari and President Tinubu's Special Adviser on Energy, Olu Verheijen.
What Is the Bonga Southwest Aparo Project?
The Bonga Southwest Aparo project is a major deepwater offshore oil development located in Nigeria's Niger Delta region. It is operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell plc, in partnership with other international oil companies including Chevron, ExxonMobil, Total, and NNPCL.
The project site holds an estimated 820 million barrels of oil reserves — making it one of the largest untapped deepwater discoveries in Africa. At peak production, the project is expected to produce approximately 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily — a significant boost to Nigeria's total hydrocarbon output.
Of the total $20 billion investment, Shell CEO Wael Sawan explained that roughly half — about $10 billion — would be capital expenditure, while the other half would cover operating expenses and other expenditures that would flow directly into the Nigerian economy over the life of the project.
Despite its enormous potential, the Bonga Southwest project has remained stuck for nearly 20 years due to disagreements over fiscal terms, production sharing arrangements, and investment incentives. Today's presidential approval breaks that deadlock and opens the door for the project to finally move forward.
What Tinubu Approved and Why It Matters
President Tinubu's approval covers a package of targeted, investment-linked fiscal incentives specifically designed to make the Bonga Southwest project commercially viable for Shell and its partners. The President was careful to clarify the nature of these incentives, stating that they are not blanket concessions that would reduce government revenues across the board.
"These incentives are not blanket concessions," Tinubu said in an official statement. "They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition."
He further set a clear deadline for the project, stating: "My expectation is clear: Bonga Southwest must reach a Final Investment Decision within the first term of this administration."
The incentives were developed after months of intensive negotiations involving key stakeholders including the Federal Inland Revenue Service, the Special Adviser to the President on Energy Olu Verheijen, and Shell CEO Wael Sawan, who met with President Tinubu at the State House in Abuja in January 2026.
President Tinubu also directed Verheijen to facilitate the formal gazetting of the incentives in line with Nigeria's existing legal and fiscal frameworks under the Petroleum Industry Act.
Shell's Growing Confidence in Nigeria
The Bonga Southwest announcement is part of a broader pattern of renewed investment by Shell in Nigeria that has accelerated significantly since President Tinubu took office in 2023.
NNPCL Group CEO Bayo Ojulari revealed that since Tinubu's executive orders on energy investment were announced, Shell alone has already invested over $7 billion in Nigeria — including a $5 billion Final Investment Decision on the Bonga North deepwater project and an additional $2 billion investment in a shallow-water gas development project.
Shell CEO Wael Sawan himself confirmed the company's enthusiasm during his meeting with President Tinubu, stating: "We are very keen to invest in Nigeria. But I'll say this hasn't always been the case. Your leadership has created an investment climate over the last few years that has propelled Shell to invest in Nigeria."
He described the potential Bonga Southwest investment as one that "could potentially be among the biggest energy projects in the world" if the Final Investment Decision is reached with partners.
What This Means for Nigeria's Economy
The economic implications of the Bonga Southwest project for Nigeria are enormous. A $20 billion investment of this scale would be one of the single largest foreign direct investments in Nigeria's history, with benefits that extend far beyond the oil sector alone.
According to official projections, the project would create thousands of direct and indirect jobs for Nigerians across engineering, offshore operations, fabrication, logistics, and energy services. Local content requirements embedded in the incentive package mean that a significant portion of the work and spending would flow to Nigerian companies and workers.
The project would also generate substantial foreign exchange inflows for Nigeria — a country that has struggled with naira depreciation and dollar scarcity in recent years. With peak production of 150,000 barrels per day of crude oil, the project would contribute meaningfully to Nigeria's daily oil production target and boost government revenues through taxes, royalties, and production sharing.
Gas production from the project — estimated at 140 million standard cubic feet per day — would also support Nigeria's domestic gas supply and contribute to the Nigeria LNG export programme, further generating foreign exchange for the country.
WetIn This Investment Mean for Nigeria and Ordinary Nigerians
For many Nigerians, news about billion-dollar oil deals sometimes feel far from their daily lives. But this Bonga Southwest project get real and direct connection to everyday Nigerians.
First, the project go create plenty jobs — both directly for engineers, divers, and offshore workers, and indirectly for businesses wey go supply equipment, food, transport, and services to the project.
Second, more oil production mean more revenue for the Nigerian government. If that money dey properly managed, e fit translate to better infrastructure, better public services, and less borrowing.
Third, more gas production from Bonga Southwest fit help address Nigeria's chronic gas supply problems — which affect electricity generation, industries, and households across the country.
The fact say this project don dey stall for nearly 20 years and Tinubu administration finally break the deadlock na something wey many energy analysts don commend. Whether the gains go reach ordinary Nigerians go depend on how transparently the revenues are managed going forward.
A New Chapter for Nigeria's Deepwater Sector
Nigeria's deepwater oil sector was once considered one of the most promising in the world. The original Bonga field — discovered in the 1990s and brought into production in 2005 — helped establish Nigeria as a major deepwater producer alongside countries like Brazil, Angola, and the United States.
However, years of policy uncertainty, fiscal disputes, security concerns in the Niger Delta, and declining investment had caused a significant slowdown in Nigeria's offshore sector. The last major deepwater Final Investment Decision before today was taken in 2008 — meaning the sector has effectively been stagnant for nearly two decades.
The Bonga Southwest approval therefore represents not just a single project milestone but a signal to the entire global energy investment community that Nigeria is once again open for major deepwater business.
Looking Ahead
With President Tinubu's approval in place, the next critical step is for Shell and its partners — including NNPCL, Chevron, ExxonMobil, and Total — to formally reach the Final Investment Decision and commit the full $20 billion to the project.
Shell CEO Wael Sawan has indicated that the company is actively working toward an FID, with 2027 cited as a possible target date if negotiations and regulatory processes proceed smoothly.
Once the FID is reached, construction and development of the project will begin in earnest, with first oil production expected several years later given the complexity and depth of the offshore development.
For Nigeria, the journey from today's approval to actual oil flowing from Bonga Southwest will take years of work, investment, and execution. But the approval of incentives by President Tinubu marks the most significant step forward this project has seen in nearly two decades — and for a country that desperately needs new sources of economic growth and foreign investment, that step is a very significant one indeed.
Source: This report is based on information published by Punch Nigeria, Voice of Nigeria, Reuters, and OilPrice.com, citing official statements from NNPCL Group CEO Bayo Ojulari, President Tinubu's Special Adviser on Energy Olu Verheijen, and Shell CEO Wael Sawan.