Tinubu approves incentives for Shell’s Bonga South West project

President Bola Tinubu has approved the gazetting of targeted, investment-linked incentives to support Shell’s proposed Bonga South West deep-offshore oil project, in a move aimed at unlocking jobs, boosting foreign exchange inflows, and accelerating investment in Nigeria’s energy sector.

The approval was disclosed on Wednesday after the President received a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, at the Presidential Villa.

According to a statement from the State House, Tinubu directed his Special Adviser on Energy, Mrs Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.

Speaking during the meeting, the President said the incentives were disciplined, targeted, and globally competitive, stressing that they were designed to attract new capital without undermining government revenues.

“These incentives are not blanket concessions,” Tinubu said. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”

He added that his administration expects the Bonga South West project to reach a Final Investment Decision (FID) within its first term.

Tinubu described the project as strategic to Nigeria’s economy, noting that it has the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over its lifespan.

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He also said the project would deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.

The President reaffirmed his administration’s commitment to policy stability, regulatory certainty, and timely decision-making, which he said are critical to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investments.

He further disclosed that Shell and its partners have invested nearly $7bn in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, describing the development as evidence that ongoing economic and energy-sector reforms are yielding results.

In his remarks, Shell’s Global CEO, Wael Sawan, said Nigeria’s investment climate has improved significantly under the Tinubu administration, adding that the company is increasingly confident in Nigeria as a destination for long-term investment.
Members of Shell’s global and Nigerian leadership teams were present at the meeting.