Nigeria Grants Shell $11.5 Tax Credit for Oil Project

The Federal Government of Nigeria, under President Bola Tinubu, has granted Shell plc a tax credit of $11.50 per barrel of crude oil produced to unlock a $20 billion investment in the Bonga Southwest Aparo deepwater oil project. This initiative is part of efforts to accelerate the project towards a final investment decision and restore investor confidence in Nigeria's oil and gas sector, which has faced significant challenges due to oil theft, pipeline vandalism, and regulatory uncertainties.

The tax credit is expected to incentivize Shell and its partners to develop the project, which is one of Nigeria's largest undeveloped deepwater oil fields and is projected to produce 150,000 barrels of crude oil per day upon commencement. The approval is part of a broader reform package introduced by the Tinubu administration since taking office in May 2023, aimed at revitalizing Nigeria's petroleum sector and attracting fresh investments.