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Shell Plc has signalled a major expansion of its operations in Nigeria, committing to invest an additional $20 billion in the country over the coming years, citing President Bola Tinubu’s leadership and vision as the driving factors behind the decision.
The announcement came during a high-level meeting at the Presidential Villa in Abuja, where Shell Chief Executive Officer, Mr. Wael Sawan, praised the President for creating a stable investment climate that has restored confidence among global oil and gas investors.
“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,” Sawan said.
The Shell CEO emphasised that the corporation’s renewed commitment reflects the administration’s focus on economic stability and long-term planning. “Stability in today’s environment will honestly have a premium for corporations 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,” he explained.
Highlighting Shell’s recent investments, Mr. Sawan pointed to the $5 billion Bonga North project, the $2 billion HI project, and the gas supply initiative to the Nigeria Liquefied Natural Gas (NLNG) facility. He added that the company is also deepening its interests in Block OML 118, the Bonga Block, through strategic acquisitions and expansions.
“Total Energies was selling, so we bought it because we want to deepen it further. But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country.
And so we are indeed working on a project, Bonga Southwest, that could, if we reach a Final Investment Decision 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.
Describing the scale of the project, Sawan noted, “This will be one of the biggest energy projects in the world. We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest.”
He framed Shell’s renewed interest in Nigeria as a “sea change” from previous years when the company had been reducing its exposure in the country. “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,” Sawan said.
The Shell CEO also praised the President’s team, describing them as among the best professionals he has worked with globally. “And that leadership, I would also say, 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, and I would say our partners as well, to have the confidence to continue to invest,” he added.
Following the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the Bonga Southwest deep offshore oil project, while directing his Special Adviser on Energy, Mrs. Olu Arowolo-Verheijen, to facilitate the process in line with Nigeria’s existing legal and fiscal frameworks.
“These incentives are not blanket concessions,” the President said. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition. My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
The engagement signals a new era of collaboration between Nigeria and global energy investors, reinforcing the country’s status as a premier destination for long-term energy projects and underlining the administration’s commitment to fostering a stable and investor-friendly environment.
