Tinubu restores investor confidence as Shell eyes $20bn Bonga Southwest project
President Bola Tinubu’s economic reforms have begun to restore investor confidence, with Shell Plc indicating plans to invest up to $20 billion in the proposed Bonga Southwest deep offshore oil project, a move linked directly to what the company described as the President’s bold and stable leadership.
The commitment was disclosed by Shell’s Chief Executive Officer, Mr Wael Sawan, during a meeting with President Tinubu at the Presidential Villa, where he said the global energy giant is deepening and expanding its investments in Nigeria due to the improved investment climate under the current administration.
Sawan noted that Nigeria has emerged as one of the countries attracting renewed interest from major international oil companies, stressing that policy clarity and stability under Tinubu have made long-term investments more attractive.
Highlighting Shell’s existing footprint, he cited recent investments including $5 billion in the Bonga North project, $2 billion in HI, and ongoing gas investments linked to the Nigeria Liquefied Natural Gas project, describing them as evidence of the company’s long-term confidence in the Nigerian economy.
According to Sawan, Shell’s renewed investment push marks a shift from previous years when uncertainty constrained capital inflow, adding that Tinubu’s vision has created a stable environment that supports investments not just for the short term, but for decades to come.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world,” he said.
“Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years, we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades.”
Speaking on the expansion of Shell’s investments in Nigeria, Mr Sawan said the corporation has also deepened its interest in Block OML 118, the Bonga Block.
“Total Energies was selling, so we bought it because we want to deepen further. But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country. And so we are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country,” he said.
“This will be one of the biggest, I would say, energy projects in the world.”
Speaking further, he added: “We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest.”
Mr Sawan described Shell’s new commitments as a “sea change” from where it was several years ago, when the corporation was pulling back on investments in the country.
“Your Excellency, to Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” the Shell Chief Executive thanked the President.
He also commended the President’s team, describing them as outstanding professionals.
“And that leadership, I would also say, has put many of the people that we are working with, your team, are amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence, and I would say our partners as well, to have the confidence to continue to invest,” he concluded.
At the meeting, Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep offshore oil project by Shell and its partners.
The President also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.
“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.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” President Tinubu added.
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