Nigeria Approves Fiscal Incentive to Unlock $20b Bonga Project

Bola Tinubu, the incumbent president of Nigeria, has nodded positively to a targeted fiscal incentive to enable the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project. 

Sources close to the matter say this is a decision set to attract about $20 billion in Foreign Direct Investment and posit Nigeria for a new wave of deepwater production.

The country’s approval follows months of technical and commercial negotiations involving state-owned NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the special adviser to the President on energy, Olu Verheijen, and Shell CEO Wael Sawan. 

This concerted push culminates into the president Tinubu’s directive, which was issued during a courtesy visit by Sawan, to fast-track the enablers required to move the strategic national asset to FID.

The Bonga Southwest Aparo project is expected to deliver 150,000 barrels per day of crude oil alongside 140 million standard cubic feet per day of gas upon completion. The approval signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes.

The Bonga Southwest project will mark the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008, restoring the country’s reputation as a prime deepwater investment destination. 

The fiscal package approved 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.

Group Chief Executive Officer of NNPC Limited, Bashir Ojulari, noted that the approval was a testament to the President’s leadership, NNPC’s disciplined execution and ability to structure complex, bankable transactions that deliver value for the country.