President Bola Ahmed Tinubu’s administration took a key step to accelerate deepwater energy investments by approving specific incentives for the Shell-led Bonga South West project. With this decision, the government seeks to attract foreign capital, encourage local employment generation and consolidate Nigeria as a strategic destination in the offshore sector.
Investments directed to the Bonga South West project
During a meeting with Shell’s global CEO, Wael Sawan, President Tinubu emphasized that the incentives are designed to attract new investment without affecting state revenues. They are directly linked to the generation of incremental production, new capital and local content, excluding general concessions. Tinubu remarked that he expects a final investment decision (FID) during his first term.
The Bonga South West project, considered strategic to the Nigerian economy, has the potential to generate thousands of direct and indirect jobs, increase foreign exchange inflows and contribute long-term tax revenues. It will also expand local participation in the engineering, manufacturing and offshore logistics value chains.
Shell and its partners have invested approximately $7 billion in Nigeria in the last 13 months, in projects such as Bonga North and HI. The approval of these new incentives consolidates the country’s strategy to boost upstream development. upstream development development in deepwater.
Wael Sawan noted that the investment climate in Nigeria has improved under the current administration, bolstering Shell’s confidence to commit to long-term projects. The company believes that more stable regulatory and fiscal conditions create an environment conducive to moving forward with large-scale investments in offshore production.
The Tinubu government has underscored its commitment to political stability and speedy implementation of reforms. This policy seeks to position Nigeria as a regional hub in the development of marine energy resources, with a focus on local content and the generation of domestic value-added.
Source and photo: Presidential Villa State House