By Olusola Bello
Global energy major Shell Plc has credited President Bola Ahmed Tinubu’s leadership with restoring investor confidence in Nigeria, citing policy stability and reform momentum as key factors behind its planned additional $20 billion investment in the country.
Speaking during a meeting with President Tinubu at the Presidential Villa, Abuja, Shell’s Chief Executive Officer, Mr Wael Sawan, said the company is deepening and expanding its Nigerian portfolio because the current administration has created what he described as a “healthy climate” for long-term investments.
According to Sawan, Nigeria under President Tinubu has re-emerged as a preferred destination for global oil and gas capital, at a time when international energy companies are becoming more selective about where they deploy long-term funds.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case,” Sawan said. “Your leadership and vision have created an investment climate over the last few years that, very honestly, has propelled us to invest—especially when we compare Nigeria with other investment destinations around the world.”
Shell’s renewed confidence is already reflected in recent commitments, including $5 billion invested in Bonga North, $2 billion in HI, and continued gas investments tied to the Nigeria LNG (NLNG) value chain. Sawan said these projects underscore the company’s belief in Nigeria’s improving macroeconomic and regulatory environment.
“Stability in today’s environment carries a premium for corporates,” he noted. “We are not investing for one administration, or even five or ten years. We are investing for 20, 30, 40 years—and in Nigeria’s case, for many decades.”
Bonga Southwest at the Centre of Expansion Plans
A major pillar of Shell’s forward-looking strategy is the proposed Bonga South West deep-offshore project, which Sawan described as potentially one of the largest energy developments globally if it reaches Final Investment Decision (FID).
Shell, he said, has already increased its exposure to OML 118 (Bonga Block) by acquiring interests divested by TotalEnergies, signalling a deliberate move to deepen its Nigerian footprint.
“That was not enough,” Sawan explained. “We believe there is more to invest here. We understand the vision you have for the country, and we are working on Bonga Southwest—a project that could see us, together with our partners, invest around $20 billion in foreign direct investment.”
He noted that roughly half of the projected investment would be capital expenditure, while the balance would flow into operating expenses and related in-country economic activity.
“This will be one of the biggest energy projects in the world,” he added, pointing also to Bonga South as another opportunity further along Shell’s investment pipeline.
A ‘Sea Change’ in Shell’s Nigeria Strategy
Sawan described Shell’s current posture as a “sea change” from its position several years ago, when the company was scaling back investments amid policy uncertainty and operational challenges.
He attributed the shift to the Tinubu administration’s willingness to address structural issues and provide targeted, investment-linked incentives, which he said are critical to unlocking large-scale offshore projects.
“Your Excellency, on Bonga Southwest, I want to thank you for the leadership you have shown—particularly in providing the incremental incentives that now give us a clear line of sight to investment,” Sawan said.
He also praised the President’s economic and energy team, describing them as among the most professional Shell engages with globally.
“That professionalism gives us—and our partners—the confidence to continue to invest,” he said.
Tinubu Approves Incentives, Sets FID Timeline
At the meeting, President Tinubu approved the gazetting of targeted incentives to support the proposed Bonga South West project and directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to ensure alignment with Nigeria’s legal and fiscal frameworks.
“These incentives are not blanket concessions,” the President said. “They are ring-fenced and investment-linked, focused on new capital, incremental production, strong local content delivery, and in-country value addition.”
President Tinubu also set a clear timeline for project execution, stating:
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.
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