Nigeria Introduces Tax Incentives to Fast-Track Shell’s $20 Billion Bonga South West Oil Development
Nigeria has introduced new investment incentives aimed at accelerating the development of Shell’s Bonga Southwest Aparo (BSWA) deepwater oil project, a major offshore development expected to attract around US$20 billion in investment.
The incentives are designed to improve the project’s commercial viability and encourage Shell and its partners to move forward with a Final Investment Decision (FID) after years of delays.
The Bonga Southwest Aparo project is one of Nigeria’s most significant planned offshore developments and is expected to boost the country’s crude oil production capacity while attracting substantial foreign investment into the energy sector.
The approved incentives include a production-linked tax framework intended to support investment, increase future output and strengthen Nigeria’s position as a leading oil producer in Africa.
Nigeria’s government said the incentives are targeted and tied to specific outcomes, including increased production, job creation, local content development and broader economic benefits.
The move forms part of President Bola Tinubu’s wider efforts to revive investment in Nigeria’s oil and gas industry by improving fiscal conditions, reducing uncertainty and encouraging international energy companies to commit capital to major projects.
Industry stakeholders have welcomed efforts to improve the investment environment, noting that competitive fiscal terms and regulatory stability are essential to unlocking large-scale offshore developments.
For Shell and its partners, the Bonga Southwest Aparo project represents a major expansion of Nigeria’s deepwater oil production and could play an important role in sustaining long-term output from the country’s offshore reserves.
The Nigerian government expects the project to generate significant investment, create economic opportunities and contribute to increased crude production once development moves forward.
