President Bola Tinubu has held high-level discussions with the Chief Executive Officer of Shell Plc, Mr Wael Sawan, over a proposed $20bn investment aimed at expanding Nigeria’s offshore oil and gas production.
The meeting, which took place recently at the Presidential Villa in Abuja, focused on Shell’s plans to deepen its long-term presence in Nigeria, particularly through new deep-water projects.
Speaking during the engagement, Sawan commended the Tinubu administration for restoring investor confidence and creating what he described as a stable and attractive environment for large-scale investments.
According to a statement released by the President’s Special Adviser on Information and Strategy, Mr Bayo Onanuga, the Shell boss said the oil major and its partners were prepared to commit an additional $20bn to Nigeria, citing the President’s leadership and policy direction as key factors influencing the decision.
Sawan noted that Nigeria has re-emerged as one of the preferred destinations for global energy investments under the current administration, adding that Shell’s renewed confidence was reflected in its recent financial commitments.
He listed ongoing and completed investments, including $5bn in the Bonga North project, $2bn in the HI development, and gas-related investments linked to the Nigeria Liquefied Natural Gas project.
“We have always wanted to invest in Nigeria, but this has not always been easy. The clarity of vision and leadership we have seen over the past few years has significantly influenced our decision to invest here, especially when compared with opportunities elsewhere in the world,” Sawan was quoted as saying.
He explained that energy investments are typically long-term and require political and economic stability, stressing that Shell’s interest in Nigeria extends beyond short-term gains.
“We do not invest for one administration or a decade. Our investments are for 20, 30 or even 40 years, and in Nigeria’s case, for many decades,” he added.
On Shell’s growing footprint in the country, Sawan disclosed that the company recently increased its stake in Oil Mining Lease 118, also known as the Bonga Block, following TotalEnergies’ divestment.
“While that acquisition strengthened our position, we believe there is still much more to do. We understand the President’s vision for Nigeria and we want to be part of it,” he said.
He further revealed that Shell and its partners are working on the proposed Bonga Southwest project, which could attract up to $20bn in foreign direct investment if it reaches the Final Investment Decision stage.
According to him, about half of the investment would be capital expenditure, while the remainder would cover operational costs that would flow directly into the Nigerian economy.
“This will rank among the largest energy projects globally,” Sawan said, adding that other prospects such as Bonga South are also being evaluated for future development.
He described Shell’s renewed commitment as a major shift from previous years, when the company scaled back its investments due to uncertainties.
Sawan also praised President Tinubu for approving targeted incentives to support the Bonga Southwest project, noting that the President’s intervention provided the confidence needed to move the project closer to execution.
“I want to personally thank you for the leadership you have shown in providing the incentives that give us a clear path to investment with our partners,” he said.
The Shell CEO also commended the President’s economic team, describing them as highly professional and among the best Shell works with globally.
Responding, President Tinubu approved the gazetting of specific, investment-linked incentives to support the proposed deep offshore project, stressing that the incentives would be tied strictly to new investments and increased production.
The President directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to ensure that the incentives are gazetted in line with existing legal and fiscal frameworks.
“These incentives are not blanket concessions. They are carefully structured, investment-linked, and focused on new capital inflows, increased production, strong local content participation, and value addition within the country,” Tinubu said.
He expressed optimism that the Bonga Southwest project would achieve Final Investment Decision within the first term of his administration.
