NIGERIA: Shell CEO Announces $20 Billion Investment Plan In Nigeria, Praises Tinubu’s Leadership

By Onoja Baba, Nigeria 

The Chief Executive of Shell Plc Wael Sawan has commended President Bola Tinubu’s leadership for creating a favourable investment climate restoring investor confidence and positioning Nigeria as a key destination for global energy companies.

During a meeting with President Tinubu at the Presidential Villa on Sunday Sawan said Shell is committed to deepening its presence in Nigeria and is prepared alongside its partners to invest an additional $20 billion primarily in the proposed Bonga South West deep offshore oil project.

He highlighted recent Shell commitments including $5 billion in Bonga North $2 billion in HI and contributions to the Nigeria Liquefied Natural Gas NLNG gas project.

Sawan described the shift as a sea change from previous years when the company had scaled back investments in the country.

“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. Your leadership and your vision have created an investment climate over the last few years that propelled us to invest” Sawan told the President.

He added “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.”

Sawan noted Shell’s acquisition of TotalEnergies’ stake in Block OML 118 the Bonga Block and ongoing interest in Bonga South West which he described as potentially one of the biggest energy projects in the world if it reaches Final Investment Decision FID stage.

In response President Tinubu approved the gazetting of targeted investment linked incentives for the Bonga South West project. He directed his Special Adviser on Energy Olu Arowolo Verheijen to facilitate the process within Nigeria’s legal and fiscal frameworks.

“These incentives are not blanket concessions. They are ring fenced and investment linked focused on new capital and incremental production strong local content delivery and in country value addition,” Tinubu said.

The President emphasised his expectation that the project must reach FID within his first term adding “My expectation is clear Bonga South West must reach a Final Investment Decision within the first term of this administration.”

Sawan also praised the professionalism of the President’s team describing them as among the best Shell works with globally.

The meeting underscores ongoing efforts to attract large scale foreign direct investment into Nigeria’s oil gas and energy sectors amid b

roader economic reforms.