President Bola Tinubu has approved targeted incentives to accelerate Shell’s long-delayed $5 billion Bonga South-West deepwater oil project.

He also instructed his Special Adviser on Energy, Olu Verheijen, to ensure the incentives are gazetted in accordance with Nigeria’s existing legal and fiscal frameworks.

The approval was granted on Wednesday when Tinubu received a Shell delegation, led by Global CEO Wael Sawan, at the State House in Abuja.

The President’s Special Adviser on Media and Public Communication, Sunday Dare, announced the approval in a statement on Thursday titled: “President Tinubu approves targeted incentives to unlock jobs, FX inflows from Shell’s Bonga Southwest Project and other deep offshore projects.”

The Bonga Southwest project, situated about 120 kilometres off Nigeria’s coast in waters deeper than 1,000 metres, has been stalled for more than a decade due to fiscal disagreements between the Federal Government and Shell Nigeria Exploration and Production Company, along with its joint venture partners.

The $5 billion project is expected to yield about 150,000 barrels of oil per day at peak production and holds substantial gas production potential, experts say.

Previous administrations struggled to agree with Shell on fiscal terms, as the company sought incentives to make the capital-intensive deepwater project commercially viable amid falling global oil prices and Nigeria’s challenging investment environment.

Announcing the development, President Tinubu described the approved incentives as “disciplined, targeted, and globally competitive,” designed to attract fresh investment without undermining government revenues.

He stated, “These incentives are not blanket concessions. 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 Southwest must reach a Final Investment Decision within the first term of this administration.”

President Tinubu instructed his Special Adviser on Energy, Olu Verheijen, to ensure the incentives are gazetted in accordance with Nigeria’s legal and fiscal frameworks, including the Petroleum Industry Act of 2021.

The President highlighted the strategic importance of the project to Nigeria’s economy, noting its potential to create thousands of direct and indirect jobs, generate substantial foreign exchange inflows, and provide sustained government revenues over its lifespan.

He added that the project would strengthen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.

Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and efficiency, stressing that these reforms are essential to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.