Abuja
Shell Plc Chief Executive Officer, Wael Sawan, has praised President Bola Ahmed Tinubu for restoring investor confidence in Nigeria and creating a policy environment that is once again attracting major global capital into the country’s oil and gas sector.
Speaking during a high-level meeting with the President at the Presidential Villa in Abuja, Sawan said Shell is deepening its commitment to Nigeria with plans to inject up to $20 billion into new and ongoing energy projects — a sharp turnaround after years of declining investment caused by policy uncertainty, security challenges, and regulatory delays.
The renewed confidence, he said, is directly linked to the Tinubu administration’s reforms and its emphasis on economic stability, investor-friendly policies, and predictable regulation.
“Nigeria under your administration has emerged as a major destination for global oil and gas investments,” Sawan told the President. “Your leadership and vision have created an investment climate that propels us to invest, especially when we compare Nigeria with other opportunities around the world.”
For much of the past decade, Nigeria’s oil and gas sector — once Africa’s most attractive energy destination — struggled to compete with other markets. Investors cited policy inconsistency, delays in passing key laws, and operational challenges as reasons for pulling back.
But Sawan said recent developments signal a turning point.
“These investments reflect Shell’s long-term commitment, anchored on Nigeria’s improving economic stability,” he said, describing the renewed momentum as a “sea change” after years of declining foreign direct investment.
Shell, one of Nigeria’s oldest and most significant energy partners, is now expanding across offshore oil and gas projects that could reshape the country’s production outlook over the next decade.
Sawan outlined several projects already underway or nearing major milestones:
- Bonga North Project – $5 billion investment:
This deep offshore development is expected to extend the life of the Bonga field and significantly boost Nigeria’s offshore production capacity. - HI Project – $2 billion investment:
The project focuses on improving efficiency and output from existing assets, ensuring stable production while lowering costs. - Gas Projects Linked to Nigeria LNG:
Shell is expanding gas supply initiatives tied to Nigeria LNG, strengthening Nigeria’s position as a key gas exporter while supporting domestic energy needs.
In addition, Shell recently increased its stake in OML 118 (the Bonga Block) following TotalEnergies’ exit, signalling even stronger confidence in the asset.
At the centre of Shell’s renewed push is Bonga South West, described by Sawan as one of the largest prospective energy investments globally.
“Bonga South West alone could attract up to $20 billion in foreign direct investment,” he said, noting that the project remains at the advanced planning stage.
According to Shell, roughly half of that investment would go into capital expenditure, while the remaining portion would be spent on local operations, supporting Nigerian contractors, service companies, and skilled jobs across the value chain.
Sawan added that additional opportunities remain in Bonga South, which is still under development and could further expand Nigeria’s offshore energy footprint.
The Shell CEO emphasised that oil and gas investments operate on multi-decade timelines, making stability more important than short-term political cycles.
“For companies investing for 20 or 30 years, long-term stability now carries a premium,” he said. “That stability is what we are seeing improve in Nigeria.”
He also praised members of President Tinubu’s economic and energy team, describing them as among the most professional Shell works with globally.
“Your team ranks among the best we engage with anywhere in the world, and that gives us confidence to keep investing here,” Sawan said.
During the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives for the Bonga South West deep offshore project — a move designed to support Shell’s Final Investment Decision (FID).
According to officials, the incentives are ring-fenced and tied strictly to new capital inflows and local value addition, rather than broad or open-ended concessions. This approach, the government says, balances investor support with national interest.
The President directed his Special Adviser on Energy, Olu Arowolo-Verheijen, to fast-track the gazette within existing legal and fiscal frameworks, signalling the administration’s commitment to large-scale, long-term energy investments.
The meeting reflects a broader strategy by the Tinubu administration to reposition Nigeria as a competitive destination for global energy capital, especially as the country works to stabilise oil output, expand gas exports, and attract new technology.
Officials say the focus is on predictability, clarity, and partnership — elements that global investors repeatedly cite as essential.
With Shell’s renewed commitment and potential $20 billion pipeline, Nigeria’s offshore sector could be entering a new phase after years of uncertainty.
While the announcements signal renewed optimism, analysts say the true test will be execution — ensuring that incentives are implemented transparently, regulatory approvals move quickly, and security and community relations are managed effectively.
For now, Shell’s endorsement stands as one of the strongest signals yet that global energy giants are beginning to take Nigeria seriously again as a long-term investment destination.
As one of the world’s biggest energy companies doubles down on Nigeria, the message from Abuja is clear: the country wants back its place on the global investment map — and is willing to back that ambition with policy action.