Nigeria has taken a major step toward reviving offshore oil investment after securing presidential approval for a key fiscal package tied to the long-delayed Bonga Southwest Aparo deepwater project.
The Nigerian National Petroleum Company Limited (NNPC Ltd) announced that the approval clears the way for a Final Investment Decision (FID) on the multi-billion-dollar project, which had been stalled for nearly 20 years due to fiscal and commercial challenges.
Granted by Bola Ahmed Tinubu, the approval introduces targeted incentives aimed at making the project more attractive to investors. Officials say the move could unlock about $20 billion in foreign direct investment and signal a fresh wave of interest in Nigeria’s deepwater oil sector.
The offshore development, operated by Shell through its Nigerian subsidiary, is expected to produce around 150,000 barrels of crude oil per day, along with significant volumes of natural gas once operations begin.
NNPC stated that the breakthrough followed months of negotiations involving government agencies, energy advisers, and international partners. The discussions focused on resolving longstanding disputes and designing a fiscal framework that balances investor returns with Nigeria’s revenue goals.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the development as a turning point for the country’s oil and gas industry. He noted that persistent policy uncertainty had delayed the project for years, but the new approval demonstrates a stronger commitment to attracting large-scale investments.
The Bonga Southwest Aparo project is set to become the first deepwater FID under a Production Sharing Contract in Nigeria since 2008, highlighting renewed confidence in the country’s regulatory environment.
Beyond boosting oil output, the project is expected to create more than 5,000 jobs during its construction and operational phases. It could also serve as a catalyst for additional offshore investments, especially as global energy companies increasingly seek stable and predictable fiscal conditions.
With the approval now in place, NNPC and its partners are expected to move toward formally taking the FID, a critical step that will unlock full project funding and kickstart development activities.
