… Shell Plans $20bn Investment as Reforms Reignite Investor Confidence — NNPCL
President Bola Ahmed Tinubu has approved the gazetting of targeted, investment-linked fiscal incentives to support Shell’s proposed Bonga South West deep-offshore oil project, a move aimed at unlocking fresh capital inflows, accelerating job creation, and strengthening Nigeria’s foreign-exchange earnings.
The President directed his Special Adviser on Energy, Mrs. Olu Verheijen, to ensure the incentives are formally gazetted in line with Nigeria’s existing legal and fiscal frameworks, underscoring the administration’s push for regulatory clarity and speed in energy-sector investments.
Speaking while receiving a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, President Tinubu described the incentives as disciplined, ring-fenced, and globally competitive, stressing that they are designed to attract new capital without eroding government revenues.
“These incentives are not blanket concessions,” Tinubu said. “They are investment-linked and focused on new capital, incremental production, strong local content delivery, and in-country value addition. My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
The President said the Bonga South West project is strategic to Nigeria’s economic growth, with the capacity to generate thousands of direct and indirect jobs, deliver significant foreign-exchange inflows, and secure long-term government revenues. He added that the development would deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.
Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and accelerated approvals, noting that these reforms are central 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 $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, describing the inflows as early evidence that ongoing economic and energy-sector reforms are yielding results.
In his remarks, Sawan said Nigeria’s investment climate has improved significantly under the Tinubu administration, adding that Shell’s confidence in the country as a long-term investment destination has strengthened.
Meanwhile, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, disclosed that Shell Plc plans to invest about $20 billion in Nigeria’s oil and gas sector over the coming years, citing renewed investor confidence driven by recent policy reforms.
Ojulari spoke after a high-level meeting at the State House between President Tinubu and Shell CEO Wael Sawan — the first engagement of its kind between a sitting Nigerian President and a Shell global chief executive.
According to Ojulari, Shell’s renewed investment appetite reflects growing international recognition that Nigeria has substantially improved its operating environment, despite intense global competition for energy capital from regions such as Guyana and parts of Asia.
“The competition for investment is global,” Ojulari said. “One of the most impactful steps taken by Mr. President was the issuance of executive orders that introduced additional incentives to attract investments.”
He said Shell’s planned capital deployment follows more than $7 billion already invested since 2024, when the administration introduced executive orders to fine-tune Nigeria’s investment climate.
Ojulari outlined three major developments that paved the way for Shell’s renewed commitments: the divestment of Shell’s onshore joint-venture assets to Renaissance, which he described as a confidence-boosting signal; the $5 billion Final Investment Decision on the Bonga North deepwater project; and a further $2 billion commitment to a shallow-water gas development.
He said the Bonga South West project, which featured prominently in Thursday’s discussions, would require an estimated $10 billion in capital expenditure, alongside substantial operating costs, once a final investment decision is reached.
According to Ojulari, approval of Bonga South West and similar deep-offshore projects would have far-reaching economic benefits beyond crude production, including the revival of dormant fabrication yards and long-term employment across construction, maintenance, logistics, and supply chains over the 20- to 30-year lifespan of such assets.
“For many years, fabrication yards have been idle because there were no projects. Those yards will come back to life,” he said.
The NNPCL chief linked the improved investor outlook directly to Tinubu’s reform agenda, noting that while the Petroleum Industry Act (PIA) of 2021 laid the legal foundation, additional targeted incentives were required to keep Nigeria competitive in the global race for energy capital.
“We needed those executive orders to fine-tune Nigeria’s competitive position,” Ojulari said, adding that the incentives are critical to counter rival jurisdictions offering aggressive investment packages.
He pledged that NNPCL would continue working with international investors and government agencies to advance credible, economically sound projects that align national interests with investor expectations.
“Our responsibility is to be the conscience of government and Nigerians, ensuring that the assumptions and promises being made are realistic and authentic,” he said.
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