Tinubu Greenlights $20B NNPCL Final Investment Decision to Unlock Bonga Deepwater Oil Project!

Abuja, Nigeria – 10 March 2026 – President Bola Ahmed Tinubu has formally approved a suite of targeted fiscal incentives and policy measures designed to unlock the long‑stalled Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater oil project, a development expected to unlock about $20 billion in foreign direct investment and invigorate Nigeria’s offshore energy landscape.

The approval, confirmed on Tuesday in a statement from the Nigerian National Petroleum Company Limited (NNPCL), comes after nearly two decades of regulatory and fiscal constraints that have delayed advancement of the ultra‑deepwater project in Nigeria’s Niger Delta offshore basin. The presidential sign‑off follows intensive negotiations involving NNPCL, the Nigeria Revenue Service, the Special Adviser to the President on Energy, and leadership of Shell plc and its partners.

Under the framework endorsed by Mr. Tinubu, the federal government has agreed to enhanced Production Tax Credits, resolution of legacy fiscal disputes, and other incentive mechanisms to create a competitive investment climate that balances national interests with investor returns. The package aims to catalyse private capital deployment and reposition Nigeria as a leading deep‑water investment destination in Africa.

According to the NNPCL release, the BSWA project — operated by Shell Nigeria Exploration and Production Company (SNEPCo) alongside all major International Oil Companies (IOCs) in Nigeria — will be the first FID on a local deepwater Production Sharing Contract asset since 2008. Once sanctioned, it is expected to deliver up to 150,000 barrels per day of crude oil and 140 million standard cubic feet of gas per day, while generating more than 5,000 direct and indirect jobs across the value chain.

Strategic Implications for Nigeria’s Energy Sector

Industry analysts say the move underpins President Tinubu’s broader energy reform agenda, anchored in the Petroleum Industry Act 2021 and reinforced through executive directives aimed at accelerating approvals, reducing regulatory bottlenecks, and expanding Nigeria’s upstream investment pipeline. By clearing the fiscal and policy hurdles that have long hampered major deepwater projects, the administration signals renewed confidence in the country’s capacity to attract long‑horizon capital — particularly from global energy majors.

NNPCL’s Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the presidential approval as a “breakthrough milestone” that reflects disciplined execution, policy clarity, and effective partnership with international investors. He noted that timely implementation of the incentive framework will be critical to sustaining investor confidence and unlocking future multibillion‑dollar projects across Nigeria’s offshore and gas sectors.

Context and Forward Outlook

The BSWA project represents a cornerstone of Nigeria’s strategy to diversify upstream investment flows and restore deepwater development momentum. Its sanction could usher in a new chapter of offshore production growth — vital for revenue generation, employment, and enhancing energy security. Moreover, the decision may spur ancillary investments in local content, technology transfer, and infrastructure development tied to deepwater operations.

As stakeholders now move toward formalising the FID and capital mobilisation, industry watchers will be monitoring the pace of regulatory implementation and project execution — key determinants of whether Nigeria can fully convert investor interest into tangible economic outcomes in the coming years.

Sources:

• BusinessDay Nigeria: NNPC gets presidential approval for $20bn FID on Bonga deepwater project
• The Punch: Tinubu approves incentives to unlock $20bn Bonga deepwater project
• Nairametrics: Bonga Southwest Aparo: Tinubu approves FID, $20B deepwater investment
• WesternPost Nigeria: NNPC secures Presidential approval for $20bn FID
• The Will News: NNPC Secures Presidential Approval to Unlock $20bn Bonga Southwest Deepwater Project

Marian Opeyemi Fasesan

Marian Opeyemi Fasesan is a dynamic journalist and editorial leader committed to excellence in news reporting and storytelling. As the Editor-in-Chief of Sele Media Africa, she ensures daily operations run smoothly while upholding the highest editorial standards. With a strong eye for detail and deep understanding of audience engagement, Marian coordinates content across platforms, guiding teams to produce compelling, timely, and credible news. Her leadership reflects the heart of Sele Media Africa’s mission—to inform, inspire, and elevate voices across the continent.

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