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From Juliana Taiwo-Obalonye, Abuja
Shell Plc’s commitment to inject $20 billion into Nigeria’s Bonga Southwest deep offshore oil project stems directly from President Bola Tinubu’s bold leadership, targeted incentives, and a restored investment climate, according to Chief Executive Officer Wael Sawan.
According to State House release by Special Adviser on Information and Strategy, Bayo Onanuga, speaking during a meeting at the Presidential Villa last week, Sawan explained that Shell’s shift from past hesitancy to aggressive expansion hinges on the stability and vision Tinubu has fostered, making Nigeria a top global destination for long-term energy investments.
Sawan speaking on the transformation said: “We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world,” he told President Tinubu.
He added that the current climate prioritises enduring stability, essential for multi-decade projects. “Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years, we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades,” Sawan emphasised.
The Shell boss noted that recent moves, like the company’s $5 billion in Bonga North, $2 billion in HI, and NLNG gas projects, were build on this foundation, adding that Nigeria now ranks among countries drawing major investments from global oil majors due to its “stable economic environment.”
Sawan explained that Shell’s strategy includes snapping up prime assets, such as Block OML 118 and Bonga Block from TotalEnergies. “Total Energies was selling, so we bought it because we want to deepen further. But that, we think, is not enough,” he said. “We think there is more to invest here, and we understand the vision that you have for the country.”
The $20 billion Bonga Southwest project represents the pinnacle. “We are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country,” he said. Sawan called it “one of the biggest… energy projects in the world,” with Bonga South as a pipeline follow-up: “We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest.”
This marks a “sea change” from years of divestments.
Praising the President directly, Sawan said:“Your Excellency, to Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners.”
He also credited the President’s outstanding professionals. “That leadership… has put many of the people that we are working with, your team, are amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence… to continue to invest,” he said.
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President Tinubu responded by approving gazetting of ring-fenced and investment-linked incentives, focused on new capital, local content, and value addition—not blanket concessions.
He tasked Special Adviser on Energy Mrs. Olu Verheijen-Arowolo to fast-track it legally and demanded FID within the first term of his administration, the statement read.
