A Nigerian advocacy group has welcomed President Bola Tinubu’s approval of new incentives for a $20 billion deepwater project, describing it as a signal that the country is finally ready for “big business.”

The Bonga Southwest Aparo (BSWA) project, operated by Shell, has been stalled for nearly two decades due to regulatory and fiscal disputes. However, recent “hands-on” engagement by the presidency aims to unlock a Final Investment Decision (FID) from the global oil giant.

The Tinubu Media Volunteers (TMV) described the move as a “testament to renewed confidence” in Nigeria’s shift toward investor-friendly policies.

Breaking a 20-year deadlock

Nigeria is Africa’s largest oil producer, but investment in its vital offshore sector has been hampered by legal uncertainty and high costs. The TMV noted that previous attempts to launch the Bonga Southwest project had repeatedly failed.

“The Bonga Southwest Deepwater project had been stalled for about twenty years,” the group said in a statement signed by Chairman Chukwudi Enekwechi and Secretary Segun Ogedengbe. “With the reforms-focused administration and NNPCL’s continuous advocacy, the logjam has been broken.”

The group argues that the incentives—which include an enhanced Production Tax Credit and the resolution of a 2021 dispute settlement agreement—create a competitive framework that balances “national interest with investor returns.”

Impact on production

The scale of the project is significant for Nigeria’s energy targets. Once fully operational, the Bonga Southwest development is expected to produce:

• 150,000 barrels of crude oil per day.
• 140 million standard cubic feet (Scf) of gas daily.

For a government looking to shore up foreign exchange reserves and boost domestic gas supply for power generation, these figures represent a major strategic win.

A signal to global investors

The TMV believes the administration’s focus on this specific project will pave the way for other international oil companies (IOCs) to reconsider Nigeria for large-scale capital investments.

“This positive development affirms the NNPCL’s commitment to unlock Nigeria’s huge potential,” the group added, praising the government’s readiness to “cultivate investors’ confidence and protect their interests.”

While analysts suggest that the actual start of production may still be years away, the removal of the fiscal hurdles is seen as the most significant step forward for the project since its initial discovery.