By Ayo Kehinde
The Nigerian National Petroleum Company (NNPC) Limited, has secured presidential approval for a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, a development expected to attract about $20 billion in foreign direct investment into Nigeria’s oil and gas sector.
The approval, granted by President Bola Ahmed Tinubu, marks a significant milestone in Nigeria’s efforts to revive large-scale upstream investments and strengthen economic growth through the energy industry.
According to a statement issued on Tuesday by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, the approval followed months of intensive technical and commercial negotiations involving NNPC Ltd as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell, Wael Sawan.
The decision also fulfils the directive issued by President Tinubu during a courtesy visit by the Shell CEO, which called for the fast-tracking of key enablers required to move the strategic project to Final Investment Decision.
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the presidential approval as a breakthrough after years of delays that stalled the development of the deepwater asset.
“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,” Ojulari said.
He noted that the milestone further reinforces NNPC Ltd’s commitment to unlocking Nigeria’s vast energy potential through partnerships, innovation, and execution excellence.
The Bonga Southwest project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, a development expected to reposition Nigeria as a leading destination for deepwater oil and gas investment.
The fiscal framework approved by the President includes an enhanced Production Tax Credit and the resolution of the 2021 dispute settlement agreement, creating a competitive investment structure that balances national revenue interests with investor returns.
NNPC Ltd said it worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor partners to develop alternative fiscal solutions capable of addressing structural constraints while safeguarding Nigeria’s long-term economic interests.
The proposal was subjected to a rigorous evaluation by the National Revenue Service before recommendations were forwarded to the Presidency for approval.
The Bonga Southwest Aparo project, operated by Shell with international oil companies as partners, is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day when completed.
Industry projections also indicate that the project will create more than 5,000 direct and indirect jobs, while boosting government revenues and strengthening Nigeria’s energy security.
With presidential approval now secured, NNPC Ltd and its partners are expected to move toward the Final Investment Decision stage, triggering the multi-billion-dollar capital commitment that could significantly transform Nigeria’s deepwater oil production landscape.
