NNPC Limited MD, Bayo Ojulari
President Bola Ahmed Tinubu has approved a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater oil project, a move expected to attract about $20 billion in Foreign Direct Investment into Nigeria’s energy sector.
The approval, announced by the Chief Corporate Communications Officer, NNPC Limited, Andy Odeh, marks a significant step in the country’s effort to revive large-scale oil and gas investments while strengthening economic growth and energy security. The Bonga Southwest Aparo development is projected to usher Nigeria into a new phase of deepwater oil production once the investment decision is finalized.
According to the national oil company, the presidential approval followed months of technical and commercial engagements involving NNPC Limited as concessionaire, the Nigeria Revenue Service, the President’s Special Adviser on Energy Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.
The process was initiated after President Tinubu directed relevant stakeholders to fast-track the enabling framework required to move the strategic oil asset to the investment decision stage.
The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the development as a major breakthrough for Nigeria’s oil industry.
“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. 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.”
Ojulari added that the progress underscores the national oil company’s determination to unlock Nigeria’s energy potential through collaboration and innovation.
> “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.”
Industry analysts say the approval is particularly significant as the Bonga Southwest Aparo project is set to become the first deepwater Production Sharing Contract project in Nigeria to reach FID since 2008. The fiscal framework endorsed by the presidency includes an enhanced Production Tax Credit as well as the resolution of issues arising from the 2021 dispute settlement agreement, creating what officials described as a competitive environment for investors.
NNPC said it worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other partners in the project to develop fiscal arrangements capable of addressing structural constraints while safeguarding Nigeria’s long-term economic interests.
The company noted that the approval followed a rigorous review by the National Revenue Service before final recommendations were submitted to the Presidency.
Officials believe the project will reinforce NNPC’s partnership-driven growth strategy, particularly as it aligns with global energy majors to expand Nigeria’s deepwater capacity.
With the presidential approval secured, NNPC and its partners are expected to move swiftly toward the final investment decision stage, which will trigger a multi-billion-dollar capital commitment to the project.
The Bonga Southwest Aparo project, operated by Shell in partnership with other international oil companies, is expected to create more than 5,000 direct and indirect jobs and produce about 150,000 barrels of crude oil per day alongside 140 million standard cubic feet of gas daily once fully developed.
