Nigeria’s President, Bola Tinubu has approved a suite of investment-linked incentives for Shell’s deepwater Bonga South West oil project aimed at bringing in fresh capital, boosting production and strengthening local content.
This decision aligns with Nigeria’s broader regulatory reforms to attract energy investment and secure long-term commitments from global oil players.
Shell has already invested billions in Nigeria’s offshore sector and plans to invest significantly more through this project, contingent upon reaching a Final Investment Decision within President Tinubu’s term.
The incentives are tailored to encourage project financing and development rather than blanket concessions, reflecting a strategic approach to energy sector policy.
Nigeria’s oil and gas sector remains central to the economy, and this deal is seen as a vote of confidence in the country’s direction on energy reform.
Analysts say enhanced production capacity could help stabilise federal revenues and strengthen economic resilience, even as global energy markets remain volatile.
