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• Ojulari, NNPCL GCEO hail president’s reforms as Shell pledges $20bn more investments
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From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has approved targeted incentives to fast-track Shell’s proposed Bonga Southwest deep-offshore oil project, promising thousands of jobs, fresh foreign exchange inflows, and long-term revenue for Nigeria.
The President directed the gazetting of these investment-linked incentives, tasking his Special Adviser on Energy, Mrs Olu Verheijen, to ensure compliance with the country’s legal and fiscal frameworks. The move follows a meeting at the State House with a Shell delegation led by Global Chief Executive Officer, Wael Sawan.
According to a statement issued by the Special Adviser on Media and Public Communication, Sunday Dare, President Tinubu described the incentives as “disciplined, targeted, and globally competitive”, emphasising that they would attract new capital without shortchanging government revenues.
“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”
He set a firm timeline, adding: “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
The project holds massive potential for Nigeria’s economy, with prospects for direct and indirect jobs, substantial FX earnings and sustained revenues over its lifespan. It will also boost local expertise in offshore engineering, fabrication, logistics, and energy services, Tinubu noted.
Reaffirming his administration’s push for policy stability and regulatory speed, the President highlighted Shell’s recent US$7 billion investment in Nigeria over the past 13 months, including the Bonga North and HI projects. “This is a clear sign that Nigeria’s economic and energy-sector reforms are delivering results,” he said.
Shell’s CEO echoed the optimism. Sawan said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that Shell is increasingly confident in Nigeria as a destination for long-term investment. The Shell team included senior executives from its global and Nigerian leadership.
The incentives aim to unlock deep-offshore projects like Bonga Southwest, positioning Nigeria as a top energy investment hub amid global oil dynamics.
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Meanwhile, fielding questions from State House correspondents, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, praised President Tinubu’s executive orders for spurring over $7 billion in Shell investments while revealing the oil major’s commitment to pump another $20 billion into Nigeria in the coming years.
Ojulari explained that the visit centred on gratitude for reforms that have restored investor confidence.
“Today, the Shell Group chairman – that’s for the whole Shell Group, not just in Nigeria, across the continent – visited Mr President, actually for the first time, and the idea was basically to come and thank Mr President for the initiative on the executive orders that were released early last year to help to attract investments,” Ojulari said.
He linked the incentives to global competition, noting: “As most of you know, following the PIA, we realised that there were additional incentives that were necessary to attract investment, and the reason for that is that the competition for investment is global, and most other countries – like other African countries, Guyana, the Far East – they’re changing their policies, very dynamic, so that they can attract those investments.”
Ojulari highlighted Shell’s milestones post-reforms: completing the onshore JV assets divestment to Renaissance, a $5 billion Final Investment Decision (FID) for Bonga North, and a $2 billion FID for the HI shallow-water gas project.
“So overall, between the time that Mr President has announced that incentive, just one company, Shell alone, has already invested over $7 billion, so you can imagine what that means in terms of replication,” he stated.
The NNPCL boss disclosed Shell’s fresh pledge during the meeting. “Today, Shell also made commitment to the President of pushing another $20 billion opportunities over the next couple of years. They indicated the ability to do this and the ability to pull in these resources… it’s because of the confidence that they have in the leadership that Mr President has demonstrated, not just talked about, but in terms of what they can touch and feel around transparency and around commitment to the agenda of Mr President.”
Spotlighting the next frontier, Bonga Southwest, Ojulari described its $10 billion capital outlay and ongoing operating expenses as a job-creating powerhouse. “That Bonga Southwest project has investment in terms of capital of close to $10 billion, but also investment in terms of operating expenses… It means more jobs in terms of people that will be involved in the construction… Most of our fabrication yards that have been closed out for many years… those fabrication yards will come to life… for the next 20, 25, 30 years, for the life of that project.”
As concession holder in Production Sharing Contracts (PSCs) with majors like Shell, Chevron, ExxonMobil and Total, NNPCL plays a watchdog role, Ojulari affirmed.
“Our responsibility is to be the conscience of the government and the conscience of Nigerians in terms of ensuring that the assumptions that have been made, the promise that have been made, that they are correct and they are authentic… We’ve been doing much of that, and we hope to complete that, and hopefully we can get Mr President’s support for the final investment decision in due course.”
