President Bola Ahmed Tinubu has approved a targeted fiscal incentive package designed to secure the long-awaited $20 billion Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
This milestone, announced on March 10, 2026, ends nearly two decades of stagnation for the strategic national asset and is poised to usher in a new era of deepwater production and foreign direct investment.
The approval follows months of high-level negotiations between the NNPC Limited, the Nigeria Revenue Service (NRS), and Shell CEO Mr. Wael Sawan, coordinated by the Special Adviser to the President on Energy, Olu Verheijen.
This fiscal framework, the first of its kind for a Nigerian deepwater Production Sharing Contract asset since 2008 features an enhanced Production Tax Credit and a definitive resolution to the 2021 dispute settlement agreement.
These measures create a competitive environment that balances robust investor returns with national value.
Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, described the development as a testament to disciplined execution and policy clarity.
He noted that the project remained stalled for twenty years until the current administration’s reform-driven leadership broke the logjam.
Under the new agreement, NNPC Limited has worked alongside SNEPCo and various contractor parties to develop bankable solutions that address structural constraints while safeguarding Nigeria’s long-term interests.
The Bonga Southwest project, operated by Shell in partnership with other major international oil companies, is expected to be a massive engine for economic growth.
Upon completion, the project is slated to deliver 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day.
Beyond energy security, the initiative is projected to create over 5,000 direct and indirect jobs, translating the federal government’s investment agenda into tangible socioeconomic outcomes for Nigerians.