NNPC Secures Presidential Approval for $20 Billion FID on Bonga Deep-water Project

President Bola Ahmed Tinubu has approved a targeted fiscal incentive aimed at unlocking the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, marking a significant milestone in Nigeria’s efforts to attract strategic investments and accelerate sustainable economic growth.

The project is expected to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new phase of deepwater oil production.
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 Chief Executive Officer of Shell, Mr. Wael Sawan.
Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, said in a statement that the development represents the culmination of the President’s directive, issued during a courtesy visit by Shell CEO Wael Sawan, to fast-track the necessary enablers required to move the strategic national asset to FID. He noted that the move signals renewed confidence in Nigeria’s policy direction and its commitment to translating reform momentum into tangible investment outcomes.
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, said the approval reflects the President’s leadership and the company’s ability to structure complex, bankable transactions that deliver value for the country.
According to him, the Bonga Southwest project had remained stalled for nearly two decades, but the current administration’s reform-driven leadership and sustained advocacy by NNPC have helped break the long-standing impasse.
Ojulari added that the milestone reaffirms NNPC’s commitment to unlocking Nigeria’s vast energy potential through partnerships, innovation, and disciplined execution.
The Bonga Southwest project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, helping to re-establish the country as a prime destination for deepwater investments.
The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and the resolution of the 2021 dispute settlement agreement, creating a competitive framework designed to balance national value with investor returns.
NNPC Limited, as concessionaire, worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor parties to develop alternative fiscal solutions that address structural constraints while safeguarding Nigeria’s long-term interests. The approval followed a rigorous evaluation by the National Revenue Service before recommendations were submitted to the Presidency.
The milestone further underscores NNPC’s strategic shift toward partnership-driven growth. By aligning with global energy majors such as Shell and securing an enabling fiscal environment, the company said it is translating the President’s investment reform agenda into concrete outcomes, including jobs, revenue generation, and improved energy security.
With presidential approval now secured, NNPC Limited and its partners will move toward the Final Investment Decision stage, triggering the multi-billion-dollar capital commitment expected to transform Nigeria’s deepwater oil sector and deliver long-term value to the country.
The Bonga Southwest Aparo project, operated by Shell with international oil companies in Nigeria as partners, is expected to generate more than 5,000 direct and indirect jobs and deliver about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day upon completion.