By Boluwatife Oshadiya | March 10, 2026
Key Points
- President Tinubu approves fiscal incentives to unlock Bonga Southwest Aparo project
- Deepwater development expected to attract about $20 billion in investment
- Project projected to produce 150,000 barrels of oil per day
Main Story
President Bola Tinubu has approved a targeted fiscal incentive package aimed at unlocking the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater oil project, a development expected to attract roughly $20 billion in foreign direct investment into Nigeria’s energy sector.
The approval followed months of negotiations involving NNPC Limited, the Nigeria Revenue Service, and international oil companies led by Shell, the operator of the Bonga field.
The project has remained stalled for nearly two decades due to fiscal and commercial constraints. With the latest presidential approval, stakeholders say Nigeria is now closer to unlocking one of its most significant offshore oil developments in recent years.
According to NNPC Limited, the Bonga Southwest project will be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, potentially repositioning the country as a major destination for deepwater investment.
The fiscal package approved by the presidency includes an enhanced Production Tax Credit and the resolution of a dispute settlement agreement reached in 2021, measures designed to improve project economics and attract investor participation.
What’s Being Said
“This development will translate reform momentum into tangible investment outcomes,” said Bashir Ojulari, Group Chief Executive Officer of NNPC Limited.
“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,” Ojulari added.
He noted that the project would create substantial economic benefits.
“The Bonga Southwest Aparo project will create more than 5,000 direct and indirect jobs and deliver about 150,000 barrels per day of crude oil and 140 million standard cubic feet of gas daily,” he said.
What’s Next
- NNPC Limited and its partners will now move toward the Final Investment Decision (FID) stage.
- Once FID is reached, the project will trigger multi-billion-dollar capital commitments from international oil companies.
- Industry analysts expect the development to boost Nigeria’s deepwater production capacity and long-term energy revenues.
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