President Bola Ahmed Tinubu has approved special tax incentives to help move forward the long-delayed Bonga Southwest Aparo (BSWA) deepwater oil project, a move expected to attract about $20 billion in foreign investment, create over 5,000 jobs, and significantly boost Nigeria’s oil and gas production.
The fiscal incentives are designed to unlock the long-awaited Final Investment Decision (FID) on the strategic offshore project, which has remained stalled for nearly two decades despite its importance to Nigeria’s energy sector.
Government officials say the incentives will make the project more commercially viable for investors while ensuring the country benefits from increased production, job creation and revenue generation.
The approval followed months of negotiations involving NNPC Limited, the Nigeria Revenue Service (NRS), the Office of the Special Adviser to the President on Energy led by Olu Verheijen, and Shell CEO Wael Sawan.
The discussions focused on resolving fiscal and structural challenges that had delayed the development of the Bonga Southwest Aparo project for years.
The deepwater project, operated by Shell through the Shell Nigeria Exploration and Production Company (SNEPCo), is expected to produce about 150,000 barrels of crude oil per day and around 140 million standard cubic feet of gas daily once fully operational.
Industry stakeholders say the project will also generate more than 5,000 direct and indirect jobs during its development and operational phases, providing significant economic opportunities across the oil and gas value chain.
The Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, described the presidential approval as a major step toward unlocking Nigeria’s deepwater potential.
“This approval is a testament to the President’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria,” Ojulari said.
He noted that the Bonga Southwest project had remained stalled for years due to a combination of fiscal uncertainties and investment constraints.
“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,” he added.
The fiscal framework approved by the President includes enhanced Production Tax Credits and the resolution of issues related to a 2021 dispute settlement agreement.
Officials say these measures are designed to create a more competitive investment environment for deepwater projects while maintaining Nigeria’s long-term economic interests.
NNPC Limited, which serves as concessionaire for the asset, worked closely with SNEPCo and other contractor partners to develop fiscal options capable of addressing long-standing structural barriers to investment.
The proposals were reviewed by the National Revenue Service before recommendations were forwarded to the Presidency for approval.
Ojulari said the development reflects the company’s strategy of unlocking Nigeria’s energy resources through partnerships and policy reforms.
“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 said.
The Bonga Southwest Aparo development will become the first deepwater Production Sharing Contract asset in Nigeria to reach a Final Investment Decision since 2008, signalling renewed momentum in the country’s offshore oil sector.
