By Danjuma Amodu | February 11, 2027
Nigeria has secured a $20 billion Final Investment Decision (FID) for the Bonga Southwest Aparo deepwater project, following presidential approval of a targeted fiscal incentive package. The project is expected to attract foreign direct investment and boost the country’s deepwater production.
The Bonga Southwest Aparo project, located in the Gulf of Guinea, has been stalled for nearly two decades. President Bola Ahmed Tinubu’s approval of the incentive package has finally unlocked the project, marking a significant milestone in Nigeria’s efforts to attract strategic investments and accelerate sustainable economic growth.
According to a statement signed by Andy Odeh, NNPCL spokesman, posted on the verified X (formerly Twitter) handle of NNPC Limited, the project is expected to create over 5,000 jobs and deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion. The project is operated by Shell, with all International Oil Companies (IOCs) in Nigeria as partners.
NNPC Limited Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the approval marked a significant achievement in Nigeria’s drive to attract strategic investments. “This approval is a testament to the President’s leadership and NNPC’s disciplined execution,” he said.
“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.”
The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns. NNPC Limited, as concessionaire, worked closely with SNEPCo and the broader contractor party to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests.
The project is the first Final Investment Decision on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination. The approval is expected to trigger a multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape and deliver enduring value to the nation.
The Nigerian government has been working to attract investments and boost oil production, which has been declining in recent years due to various challenges, including insecurity and regulatory issues. The Bonga Southwest Aparo project is expected to contribute significantly to Nigeria’s oil production and economic growth.
