Tinubu Approves $20bn Bonga Project Incentives

President Bola Ahmed Tinubu approved a fiscal incentive package aimed at unlocking the long-delayed $20 billion Bonga Southwest Aparo deepwater project, which is expected to attract substantial foreign direct investment into Nigeria's oil and gas sector. The approval, announced on Tuesday, follows negotiations among key stakeholders, including the Federal Inland Revenue Service and the Nigerian National Petroleum Company (NNPC).

The Bonga Southwest Aparo project, operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell PLC, has been stalled for nearly two decades. The approval is seen as a significant step towards restoring investor confidence in Nigeria's deepwater petroleum assets and includes enhanced product tax credits and measures to create a competitive environment for investors.

The project is expected to produce 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, generating approximately 5,000 direct and indirect jobs. It forms part of the federal government's broader strategy to attract $100 billion in new investments by 2030.