January 26, (THEWILL) — Shell Plc has announced plans to invest an additional $20 billion in Nigeria, citing President Bola Tinubu’s leadership, policy direction, and commitment to economic stability as key factors driving the decision.
The disclosure was made by Shell’s Chief Executive Officer, Mr Wael Sawan, during a meeting with President Tinubu at the Presidential Villa, Abuja, where he said the company was deepening and expanding its investments in the country alongside its partners.
Sawan said the Tinubu administration had restored investor confidence by creating a predictable and stable business environment that supports long-term investments.
“We have really been in a space where we are very keen to invest in Nigeria. But this has not always been the case. Your leadership and vision have created an investment climate that has propelled us to invest, especially when compared with other destinations globally”, he said.
Sewan explained that Shell typically invests in long-term horizons of 20 to 40 years and beyond, noting that stability and consistency in policy were critical to such commitments.
Highlighting recent investments, the Shell chief listed $5 billion in Bonga North, $2 billion in HI, and gas projects linked to Nigeria Liquefied Natural Gas (NLNG) as evidence of the company’s renewed confidence in Nigeria’s economy.
Sawan also disclosed that Shell had deepened its interest in Block OML 118, which hosts the Bonga field, following its acquisition of interests previously held by TotalEnergies. He added that Shell and its partners were advancing plans for the Bonga Southwest project, which could attract about $20 billion in foreign direct investment if it reaches Final Investment Decision (FID).
“This will be one of the biggest energy projects in the world”, he said, noting that about half of the projected investment would be capital expenditure, while the rest would go into operating costs and services within Nigeria.
In response, President Tinubu approved the gazetting of targeted, investment-linked fiscal incentives to support the proposed Bonga Southwest deep offshore project. He also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the incentives in line with Nigeria’s legal and fiscal frameworks.
“These incentives are not blanket concessions. They are ring-fenced and investment-linked, focused on new capital, incremental production, strong local content delivery, and in-country value addition”, the President said.
Tinubu added that his expectation was for the Bonga Southwest project to reach Final Investment Decision within the first term of his administration.
Sawan commended the President’s economic team, describing them as outstanding professionals whose competence had strengthened Shell’s confidence in Nigeria as a long-term investment destination.
The development is seen as a major boost to Nigeria’s upstream oil and gas sector and a strong endorsement of the Federal Government’s ongoing economic reforms.
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