President Bola Ahmed Tinubu has approved a targeted fiscal incentive package to unlock the long-delayed Bonga Southwest Aparo deepwater project, a move expected to attract about $20bn in foreign direct investment into Nigeria’s oil and gas sector.

The approval, announced on Tuesday by Nigerian National Petroleum Company Limited, is intended to clear the path for a long-awaited Final Investment Decision on the offshore project, which has remained stalled for nearly two decades.

The Bonga Southwest Aparo project is operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell plc, and involves a consortium of international oil companies working alongside the national oil company.

According to NNPCL, the presidential approval followed months of negotiations among key stakeholders, including the National Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.

In a statement signed by the Chief Corporate Communications Officer of NNPC Limited, Andy Odeh, the company described the decision as a major step toward restoring investor confidence in Nigeria’s deepwater petroleum assets.

The fiscal framework approved by President Bola Ahmed Tinubu includes an enhanced production tax credit and the resolution of the 2021 dispute settlement agreement—measures designed to create a more competitive investment environment while safeguarding Nigeria’s long-term revenue interests.

The statement said the approval followed extensive technical and commercial discussions aimed at resolving long-standing fiscal and contractual challenges that had delayed the project’s launch.

It added that the decision also implements a directive issued by President Tinubu during an earlier meeting with the leadership of Shell plc and to fast-track the conditions required for the project to reach a Final Investment Decision.

The Group Chief Executive Officer of NNPCL, Bayo Ojulari, said the approval marked a turning point for the project, which had remained stalled for nearly two decades.

“This approval is a testament to the President’s leadership, NNPC’s disciplined execution, and our ability to structure complex, bankable transactions that deliver value for Nigeria. For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam. This is what partnership, persistence, and policy clarity can achieve,” he said.

He noted that the development underscores Nigerian National Petroleum Company Limited’s resolve to unlock Nigeria’s vast energy resources.

“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence

“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation, and execution excellence,” he added.

According to NNPCL, the Bonga Southwest Aparo project will mark Nigeria’s first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008, potentially signalling renewed investor interest in offshore exploration.

The project stands as one of Nigeria’s most significant upstream investments in recent years and could help revive deepwater exploration, which has slowed due to fiscal uncertainties and pressures from the global energy transition.