PRESIDENT Bola Tinubu has authorised a targeted production tax credit aimed at accelerating the final investment decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater oil project.
In a statement released on Tuesday, Spokesperson for Nigerian National Petroleum Company Limited (NNPCL), Mr Andy Odeh, said the planned investment marks a significant step in Nigeria’s effort to attract large-scale energy investments and stimulate long-term economic growth.
According to the statement, the development could bring about $20 billion in foreign direct investment (FDI) into the country and help usher in a new phase of deepwater oil production.
Odeh explained that the presidential approval followed months of detailed technical and commercial negotiations involving NNPC as concessionaire; the Nigeria Revenue Service (NRS); President’s Special Adviser on Energy, Ms Olu Verheijen,, and Chief Executive Officer of Shell, Mr Wael Sawan.
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He said the decision stems from a directive issued by the president during a previous meeting with the Shell chief executive, instructing relevant stakeholders to fast-track the conditions required to move the project toward FID.
The move, he added, reflects growing investor confidence in Nigeria’s policy direction and the government’s determination to convert ongoing economic reforms into tangible investments.
NNPC noted that the Bonga Southwest Aparo project will represent Nigeria’s first final investment decision on a deepwater production sharing contract (PSC) asset since 2008, signalling the country’s return as a leading destination for deepwater oil investment.
The fiscal measures approved by the president include an enhanced production tax credit and the resolution of issues linked to the 2021 dispute settlement agreement, establishing a framework designed to balance national revenue interests with competitive investor returns.
NNPC said it collaborated closely with Shell Nigeria Exploration and Production Company and other project partners to develop fiscal alternatives capable of addressing structural constraints while safeguarding Nigeria’s long-term economic interests.
The proposal underwent evaluation by the NRS before recommendations were forwarded to the presidency for final approval. The development, according to NNPC, reinforces the company’s strategy of expanding growth through partnerships with global energy companies.
The company added that the collaboration with Shell and other international oil firms will help translate the administration’s reform agenda into practical outcomes by generating employment, increasing government revenue, and strengthening Nigeria’s energy security.
With the presidential clearance secured, NNPC and its partners are expected to proceed toward the FID, which will unlock the multi-billion-dollar capital commitment required to advance the project.
The Bonga Southwest Aparo project, operated by Shell with other international oil companies as partners, is projected to create more than 5,000 direct and indirect jobs. Upon completion, it is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
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Commenting on the development, Group Chief Executive Officer of NNPC, Mr Bayo Ojulari, described the approval as evidence of the president’s leadership and the company’s capacity to structure complex, bankable energy transactions.
Ojulari noted that the Bonga Southwest project had remained stalled for nearly two decades but has now regained momentum under the current reform-driven policy environment.
He added that the breakthrough highlights NNPC’s commitment to unlocking Nigeria’s vast energy resources through strategic partnerships, innovation, and disciplined project execution.
