In a major boost to Nigeria’s oil sector, Shell Plc’s Chief Executive Officer, Wael Sawan, has hailed President Bola Tinubu’s visionary leadership as the key driver behind the energy giant’s plan to pour $20 billion into the country’s deep offshore oil projects, signaling a dramatic turnaround in investor confidence.
Sawan made the remarks during a high-level meeting with President Tinubu at the Presidential Villa in Abuja on Saturday, where he outlined Shell’s aggressive expansion strategy, including fresh investments in the Bonga Southwest project.
According to a statement issued on Sunday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the announcement underscores Nigeria’s resurgence as a prime destination for global oil majors amid stabilising economic policies.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case,” Sawan told the President. “Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world.”
The Shell CEO highlighted recent commitments, such as $5 billion in Bonga North, $2 billion in HI-Akre, and expansions to the Nigeria LNG gas project, as evidence of the firm’s long-term bet on Nigeria. He described the proposed Bonga Southwest initiative—building on Shell’s acquisition of TotalEnergies’ stake in OML 118 and Bonga Block—as a game-changer.
“Total Energies was selling, so we bought it because we want to deepen further. But that, we think, is not enough,” Sawan explained. “We are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country. This will be one of the biggest, I would say, energy projects in the world.”
Sawan emphasized the need for enduring stability to justify multi-decade investments. “Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years, we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades,” he said.
He described Shell’s shift as a “sea change” from years past, when the company was scaling back. “Your Excellency, to Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” Sawan added, while praising Tinubu’s team as “outstanding professionals” and “amongst the best that we are dealing with anywhere in the world.”
In response, President Tinubu approved the gazetting of targeted incentives to fast-track the Bonga Southwest project, directing his Special Adviser on Energy, Olu Verheijen, to ensure compliance with Nigeria’s legal and fiscal frameworks.
“These incentives are not blanket concessions,” the President clarified. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”
Tinubu set a firm timeline: “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”
The deal positions Nigeria to attract one of the world’s largest energy projects, potentially injecting billions in capital expenditure, jobs, and local value while reinforcing Tinubu’s push for investment-driven growth.
