Tinubu Lauds Shell’s $5 Billion Bonga North Investment, Heralding a New Era for Nigeria’s Energy Sector
In a landmark development for Nigeria’s energy sector, President Bola Ahmed Tinubu has commended Shell Nigeria Exploration and Production Company Limited (SNEPCo) and its partners for their $5 billion commitment to the Bonga North deep-water oil project. The final investment decision (FID) for this ambitious project, the first of its kind in over a decade, reflects the transformative impact of the Tinubu administration’s policies and its focus on fostering a competitive and investor-friendly environment.
Revitalizing Nigeria’s Deepwater Energy Ambitions
The Bonga North oilfield, located 130 kilometers offshore within Oil Mining Lease (OML) 118, represents a pivotal step in Nigeria’s deepwater oil exploration. The project is expected to produce approximately 350 million barrels of crude oil, further solidifying Nigeria’s position as a leading oil producer. Shell holds the largest operational stake in the venture at 55%, with additional partners including the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
This milestone investment underscores renewed confidence in Nigeria’s energy sector, a sentiment echoed by President Tinubu. “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people,” the President stated in a release issued by his spokesman, Mr. Bayo Onanuga.
President Tinubu added: “We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. We will continue to offer the necessary support to ensure their success and the realization of Nigeria’s energy potential.”
Strategic Reforms Driving Investment
The FID for Bonga North follows a series of bold reforms spearheaded by the Tinubu administration. At the heart of these reforms are Presidential Directives 40, 41, and 42, which were introduced in early 2024. These directives aim to accelerate regulatory approvals, streamline project timelines, reduce operational costs, and offer competitive fiscal incentives to attract global investments.
The Bonga North project is the second major success story under these directives. Earlier this year, the Ubeta oilfield (OML 58), a dormant asset discovered in 1965, also achieved FID through a partnership between TotalEnergies and NNPC Limited. The Ubeta project is expected to produce 350 million standard cubic feet of gas per day, enhancing domestic energy supply and strengthening Nigeria’s global presence in the energy market.
These reforms have created a ripple effect across the oil and gas sector, dispelling concerns about International Oil Companies (IOCs) exiting Nigeria. Ms. Olu Verheijen, Special Adviser to the President on Energy, emphasized this point, stating: “The Bonga North FID shows that IOCs are not leaving but are instead strategically pivoting their capital and technical capacity toward deepwater and integrated gas projects. These align with President Tinubu’s vision of transforming Nigeria into a global energy hub.”
Economic Impact and Local Empowerment
Beyond bolstering Nigeria’s crude oil production, the Bonga North project is expected to have far-reaching economic implications. By creating thousands of direct and indirect jobs, strengthening local supply chains, and fostering capacity development, the project is set to be a catalyst for national economic growth.
Additionally, the strategic shift of IOCs to deepwater projects has opened new opportunities for local oil and gas companies to expand their onshore operations. This transition is helping to build a more diversified and resilient energy industry in Nigeria.
“This divestment from onshore operations by IOCs is a chance for local companies to take center stage, creating a solid foundation for Nigeria’s energy future,” Ms. Verheijen remarked.
Tinubu’s Global Engagements Bear Fruit
President Tinubu’s proactive engagement with global energy stakeholders has been instrumental in securing the wave of renewed investments in Nigeria’s oil and gas sector. During a high-level meeting with Shell’s global leadership in July 2023, the President emphasized his administration’s commitment to fostering a stable and predictable investment climate.
“We are open for business and serious about creating a stable, predictable, and investor-friendly environment,” President Tinubu declared during the meeting.
The President’s assurances have been backed by concrete actions, including the introduction of policies that provide regulatory clarity and reduce bureaucratic bottlenecks. These measures have not only attracted global players like Shell but also set the stage for further investments by both international and domestic energy companies.
A Blueprint for Future Growth
The success of Bonga North and Ubeta is more than just a testament to the effectiveness of the Tinubu administration’s policies; it signals the dawn of a new era for Nigeria’s energy sector. By 2025, industry experts anticipate additional FIDs from major players, marking an era of unprecedented growth and opportunity for the country.
“These projects will trigger broader investments that will revolutionize Nigeria’s power generation, transportation, and manufacturing sectors,” Ms. Verheijen noted.
As Nigeria positions itself as a global energy hub, the ripple effects of these investments will extend beyond the oil and gas sector. They will drive innovation, infrastructure development, and economic diversification, ensuring that the benefits are felt across all facets of the Nigerian economy.
Looking Ahead
The $5 billion Bonga North project is not just an investment in Nigeria’s energy sector; it is an investment in the country’s future. With strategic reforms, unwavering commitment, and a clear vision for growth, the Tinubu administration is laying the groundwork for a more prosperous Nigeria.
As the world watches, Nigeria is proving that it is not only open for business but also ready to lead in the global energy arena. The Bonga North project is a shining example of what can be achieved when government, industry, and local stakeholders work together toward a common goal: a stronger, more resilient Nigeria.
