President Bola Ahmed Tinubu has approved a special fiscal incentive aimed at enabling a final investment decision on the Bonga Southwest Aparo deepwater oil project, a move expected to attract about $20 billion in foreign investment into Nigeria’s energy sector.
The approval, announced by NNPC Limited, is designed to revive the long-delayed Bonga Southwest Aparo project, which has remained stalled for nearly two decades. The development is expected to unlock large-scale investment in deepwater oil production and strengthen Nigeria’s position as a key destination for offshore energy projects.
According to NNPC, the decision followed months of negotiations involving the national oil company, government agencies and international partners, including Shell plc. Discussions focused on resolving fiscal and commercial issues that had previously slowed progress on the project.
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, said the presidential approval demonstrates the government’s commitment to unlocking investment in Nigeria’s energy industry.
He noted that the Bonga Southwest project had been delayed for years but is now moving forward due to renewed policy support and collaboration between the government and industry partners.
The Bonga Southwest Aparo development will be the first final investment decision on a Nigerian deepwater production sharing contract since 2008, signalling renewed investor confidence in the country’s offshore oil sector.
The fiscal framework approved by the president includes an enhanced production tax credit and a resolution mechanism for a dispute settlement agreement reached in 2021.
Authorities say the package is intended to balance government revenue interests with investor returns.
NNPC said it worked with Shell Nigeria Exploration and Production Company and other partners to design the fiscal arrangement that would make the project commercially viable while safeguarding Nigeria’s long-term benefits.
Once the final investment decision is completed, the project is expected to trigger a multi-billion-dollar capital commitment and significantly expand Nigeria’s deepwater oil output.
When operational, the Bonga Southwest Aparo field is projected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily. The development is also expected to create more than 5,000 direct and indirect jobs during its lifecycle.
Industry observers say the project could play an important role in boosting Nigeria’s energy production, government revenues and employment while strengthening the country’s offshore oil infrastructure.
