Presidential Incentives Target Multibillion-Dollar Shell Bonga Southwest Project
Reporting by The Nation indicates that President Bola Tinubu has approved a suite of targeted fiscal incentives to catalyze investment in major deep offshore oil projects, specifically focusing on Shell’s Bonga Southwest development. The move is intended to unlock thousands of jobs and ensure a steady inflow of foreign exchange. The President emphasized that these are “disciplined and globally competitive” measures rather than blanket tax holidays.
The incentives are structured to make Nigeria’s energy sector more attractive to international oil companies (IOCs) who have recently pivoted toward other African frontiers. During a meeting with Shell’s Global CEO, Wael Sawan, the Presidency highlighted that Shell and its partners have already committed nearly $7 billion to various Nigerian projects over the past 13 months. This new policy framework is expected to accelerate the Final Investment Decision (FID) for Bonga Southwest.
Validation from Vanguard shows that industry analysts see this as a turning point for the petroleum sector, with one expert stating that policy stability is critical for restoring long-term upstream confidence. Additionally, Channels TV reported that the government expects the project to generate sustained revenue over the life of the asset. Shell’s CEO remarked that Nigeria’s investment climate has improved, giving the company confidence to evaluate longer-term horizons.
Echotitbits take: After years of divestment talk, this is a major signal to Nigeria’s upstream sector. The focus on targeted rather than blanket incentives suggests a more sophisticated approach to balancing investor needs with national revenue. The immediate impact will be on FX stability if these projects move from paper to production.
Source: The Punch — https://punchng.com/shells-5bn-bonga-swest-project-gets-presidential-support/ (2026-01-23)
Photo Credit: The Punch 2026-01-23