President Bola Tinubu has approved for NNPCL a targeted fiscal incentive designed to unlock the long-awaited $20 billion Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
This was contained in a press release by the NNPCL Chief Corporate Communications Officer, Andy Odeh, on Tuesday.
The presidential approval for the FID on the deepwater project marked a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth.
As stated in the press release, the FID BSWA deepwater project is estimated to attract about $20 billion in Foreign Direct Investment (FDI) and position Nigeria for a new era of deepwater production.
The approval by President Tinubu, it was stated, followed months of intensive technical and commercial negotiations involving NNPCL as the concessionaire, Nigeria Revenue Service (NRS), Special Adviser to the President on Energy, Olu Verheijen, and Shell CEO, Mr. Wael Sawan.
“It represents the culmination of the president’s directive, issued during a courtesy visit by Shell CEO, Mr. Wael Sawan, to fast-track the enablers required to move this strategic national asset to FID.
“It signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes,” it was added.
“This approval is a testament to President Tinubu’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria.
“For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam.
“This is what partnership, persistence, and policy clarity can achieve,” the NNPCL Group Chief Executive Officer, Engineer Bayo Ojulari, said about the development.
“This milestone further affirms NNPC’s commitment, under the president’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence,” he added.
The Bonga Southwest project, it was disclosed, will be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination.
The fiscal package approved by President Tinubu included an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
NNPCL, as concessionaire, worked closely with SNEPCo and the broader contractor party to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests.
The approval by Tinubu, it was added, was granted rigorous evaluation by the National Revenue Service (NRS) and submission of recommendations to the Presidency.
“This milestone reinforces NNPCL’s strategic pivot toward partnership-driven growth.
“By aligning with global majors like Shell and securing the enabling fiscal environment, NNPCL is translating the president’s investment reform agenda into tangible outcomes—jobs, revenues, and energy security for Nigerians.
“With presidential approval secured, NNPCL and its partners will now progress toward FID, triggering the multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape and deliver enduring value to the nation,” it was added.
The BSWA project, operated by Shell with all IOCs in Nigeria as partners, it was said, will create over 5,000 direct and indirect jobs, and deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.
