Tinubu Unveils Incentives to Unlock Jobs, FX Inflows from Shell’s Bonga Southwest, Others

• Says project ‘ll be delivered before May 2027

•Ojulari reveals Shell ready to make $20bn additional investment

•In Davos, Edun pitches productivity-led investments to drive jobs, exports

Deji Elumoye in Abuja and Nume Ekeghe in Lagos

President Bola Tinubu yesterday approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga Southwest deep-offshore oil project by Shell and its partners.

The President also directed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the  process, in line with Nigeria’s existing legal and fiscal frameworks, assuring that the project will be delivered before the end of his first tenure in 2027.

Speaking while playing audience to a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, Tinubu said the incentives were disciplined, targeted, and globally competitive, designed to attract new capital without undermining government revenues.

“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 (FID) within the first term of this administration,” Tinubu stated.

The President stressed that the Bonga project was strategic to Nigeria’s economy, with the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over the life of the project.

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

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

Besides, he noted that Shell and its partners have invested nearly $7 billion in Nigeria in the past 13 months, particularly in the Bonga North and HI projects, describing this as a clear sign that Nigeria’s economic and energy-sector reforms are delivering results.

Earlier in his remarks, the Shell Chief, Sawan,  said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that Shell is increasingly confident in Nigeria as a destination for long-term investment.

Also, in an interview with newsmen after the visit, Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Bayo Ojulari, disclosed that the Shell boss was visiting the President  for the first time, highlighting the impact of the executive orders released last year to help to attract investments.

He said: “Following the PIA, we realised that there were additional incentives that were necessary to attract investment and the reason for that is that the competition for investment is global and most other countries, like other African countries, Guyana, the Far East, they are changing their policies, very dynamic, so that they can attract those investments.

“So one of the great things that Mr. President did was to actually announce those executive orders to put additional incentives to be able to attract investments. Having done that, Shell was then able to do three things over the last, I would say, one and a half years.

“One, Shell was able to complete its transaction of the onshore JV assets that was, as most of you know, transferred to Renaissance. Completing that transaction showed to the world Mr. President’s commitment to the ability for investors to bring in investments and also, if they needed to exit, to exit, because the investment world is very dynamic.

“I think that brought confidence to the international community, including Shell. Having completed that divestment exercise,  Shell has then taken a final investment decision of $5 billion for the development of Bonga North.

“Subsequently, they took another investment decision last year for what we call a Shallow Water Feed, we call it HI, for gas development, another $2 billion. So overall, between the time that Mr. President has announced that incentive, just one company, Shell alone, has already invested over $7 billion, so you can imagine what that means in terms of replication.”

Ojulari further disclosed that Shell made further commitments worth $20 billion investments over the next couple of years in the country. He gave an assurance that NNPC will continue to work with Shell and other international investors towards achieving the desired goals.

He added: “Today Shell also made a commitment to the President to push another $20 billion opportunities over the next couple of years. They indicated the ability to do this and the ability to pull in these resources.

“To that extent, Shell also then started talking about the next project they are looking at, to take final investment decision on. We are working with them assiduously on that project, it’s the Bonga Southwest project. That Bonga Southwest project has investment in terms of capital of close to $10 billion, but also investment in terms of operating expenses.”

According to him, this means more jobs for Nigerians, explaining that most fabrication yards that have been closed down for many years  will come to life as a result of the proposed project.

“Most Nigerians have made huge investments in fabrication yards that have been idle for many years. Apart from the project phase, completing that project means you then have people employed for the next 20, 25, 30 years for the life of that project,” he pointed out.

Meanwhile, Finance Minister and Coordinating Minister of the Economy, Dr. Wale Edun, has said that Nigeria is intensifying its push for foreign direct investment as it seeks to lift productivity, create jobs and broaden export capacity.

Speaking in an interview with ARISE News on the sidelines of the World Economic Forum (WEF) in Davos, yesterday, Edun said the federal government was positioning the country as a credible destination for long-term capital by leveraging reforms and deepening global economic diplomacy.

He reiterated that Nigeria’s presence in Davos was deliberate, aimed at staking a claim for global capital while reinforcing confidence in Nigeria’s investment climate.

He said: “Mr. President’s global economic diplomacy has already begun to yield results. Just last week, for instance, Nigeria signed a Comprehensive Economic Partnership Agreement with the UAE. These are the kinds of frameworks that attract capital, predictable, reliable investment climates where investors can see clear returns. Of course, they are looking for returns on their investments, and we are equally looking to benefit.

“We also have a number of initiatives in the pipeline and are preparing to announce investments similar to what other countries are doing. That is why we are here, to attract investment into Nigeria and to make the case not only to foreign investors, but also to Nigerians in the diaspora and Nigerians at home.”

Edun also weighed in on global geopolitical developments and their implications for Nigeria’s engagement with international investors, including recent remarks by former US President Donald Trump at Davos.

He added: “For Nigeria, what matters most is that global trade and global output continue to grow. We operate an open economy and are pursuing free-market policies. Africa currently accounts for only about 3 per cent of world trade and roughly 2.5 per cent of global output. As those figures improve, opportunities for exports expand.

“Nigeria exports just under $4 billion worth of goods to the United States. While that figure is modest, it is important and we want it to grow. To the extent that global trade policies do not become more restrictive, what President Trump said was generally optimistic and encouraging for us.”

Furthermore, he stressed that for Nigerians at home, the ultimate objective of the policies is the rapid, sustained and inclusive growth that creates jobs, raises incomes and lowers inflation.

“What we are doing here ties directly into that goal. We are focusing on re-industrialising Nigeria, particularly in manufacturing. With the Dangote Refinery and other private refineries now operational, Nigeria has access to petrochemicals and industrial raw materials.

“ This positions us to attract investors to produce locally for our large domestic market and for exports. That process creates jobs, improves productivity and ultimately grows the economy,” he emphasised.