President Bola Tinubu has approved the Final Investment Decision (FID) on the Bonga Southwest deepwater project, estimated to attract about $20 billion in Foreign Direct Investment into Nigeria.
This marks a significant step in Nigeria’s quest to attract strategic investments and accelerate sustainable economic growth.
According to a statement by Andy Odeh, Chief Corporate Communications Officer, Nigeria National Petroleum Company (NNPC) Limited, the approval of FID on Bonga Southwest Project ushers in a new era of deepwater crude oil production in Nigeria.
The statement said the approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the 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,” Odeh stated.
The NNPC spokesperson further noted that the FID approval signals renewed confidence in Nigeria’s economic and investment policy direction.
Commenting on the development, the Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, said the approval is a clear demonstration of the Federal Government’s ability to resolve complex issues and fashion out critical investment projects that deliver value for Nigeria.
“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 stated.
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According to him, the Bonga Southwest project has been stalled for nearly two years, but “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 NNPC GCEO further stated, “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.”
The Bonga Southwest project will be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination.
According to the statement, the fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
The national oil firm highlighted that as a concessionaire, it worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and the broader contractor party to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests.
It said the approval was granted after rigorous evaluation by the National Revenue Service and submission of recommendations to the Presidency.
The NNPC stressed that the milestone reinforces its strategic pivot toward partnership-driven growth. “By aligning with global majors like Shell and securing the enabling fiscal environment, NNPC Ltd is translating the President’s investment reform agenda into tangible outcomes—jobs, revenues, and energy security for Nigerians,” Odeh stated.
He added that having secured the Presidential approval, the NNPC Limited and its partners will now move toward FID, triggering the multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape.
The company revealed that the Bonga Southwest Aparo project, operated by Shell with all IOCs in Nigeria as partners, 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.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
