Nigeria’s oil sector continues to attract significant investments, with Shell’s approval of a $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore project. This move highlights the country’s growing appeal as a destination for international oil companies (IOCs) and underscores the positive impact of ongoing economic reforms.
The Democratic Front (TDF) expresses strong support for the development, emphasizing that the project further affirms the success of President Bola Tinubu’s administration in creating a favorable environment for investment. In a statement, signed by TDF Chairman Mallam Danjuma Muhammad and Secretary Chief Wale Adedayo, the group notes that the $5 billion investment will significantly enhance Nigeria’s oil output, with the Bonga North field expected to produce up to 350 million barrels of crude oil.
TDF highlights the strategic importance of Shell’s decision, pointing out that the investment results directly from President Tinubu’s policy reforms, including Presidential Directives numbers 40, 41, and 42. These measures streamline regulatory approvals, reduce operational costs, and offer competitive fiscal incentives within the oil and gas sector.
The statement also emphasizes the broader economic impact of the Bonga North project, noting that it will not only boost Nigeria’s oil revenue but also strengthen its position as Africa’s largest oil producer. Additionally, the group points to other strategic investments, such as TotalEnergies’ $500 million commitment to the Ubeta gas field, which further demonstrate the success of the fiscal reforms.
“The Bonga field, which has been operational since 1996, has never seen an investment of this scale,” TDF says. “This highlights President Tinubu’s pro-business stance and his administration’s focus on improving the country’s investment climate.”
The group expresses confidence that other IOCs will continue to be attracted by the incentives offered under the current reforms, boosting Nigeria’s oil and gas sector and its broader economy.
- Shell Nigeria Exploration and Production Company (SNEPCo) approves the $5 billion FID for the Bonga North deep-water project.
- The project is expected to produce approximately 350 million barrels of crude oil, significantly contributing to Nigeria’s oil revenue.
- Shell owns a 55% stake in the Bonga Floating Production Storage and Offloading (FPSO) facility, reinforcing its commitment to the project.
- This investment further establishes Nigeria as a prime location for foreign investment, driven by recent fiscal and regulatory reforms aimed at enhancing the business environment.
 for the Bonga North Deep Offshore project. This move highlights the country’s growing appeal as a destination for international oil companies (IOCs) and underscores the positive impact of ongoing economic reforms.){kind=link}