Shell Plc plans to deepen its presence in Nigeria, with potential additional investments of up to $20 billion. The company cited improved policy clarity, leadership stability, and a more supportive investment climate under President Bola Tinubu’s administration.
Shell’s Chief Executive Officer, Wael Sawan, disclosed this during a meeting with President Tinubu at the Presidential Villa last week. He said Nigeria has re-emerged as a competitive destination for long-term energy investment.
Sawan said Shell’s renewed push reflects growing confidence in Nigeria’s economic direction, especially compared with other global investment destinations.
He noted that Shell and its partners have already committed significant capital to the country. These include about $5 billion for the Bonga North project, roughly $2 billion in its HI portfolio, and further investments tied to gas supply projects supporting the Nigeria LNG (NLNG) value chain.
According to Sawan, stronger policy stability has boosted Shell’s appetite for Nigeria. He stressed that large energy projects span decades, not political cycles.
“In today’s global environment, stability carries a premium,” he said. Shell, he added, assesses investments over 20- to 40-year horizons. Nigeria, he said, now offers the predictability required for such commitments.
Bonga Southwest Anchors New Investment Drive
Shell’s proposed Bonga Southwest deepwater project sits at the centre of its new investment plans. Sawan described it as one of the largest potential energy developments currently under global consideration.
He said Shell recently increased its stake in Oil Mining Lease (OML) 118, which hosts the Bonga field. The move followed Shell’s acquisition of interests divested by TotalEnergies. According to him, the deal aligns with Shell’s strategy to expand its deepwater portfolio in Nigeria.
If the project reaches Final Investment Decision (FID), Shell and its partners could inject about $20 billion into the Nigerian economy. Sawan said around half would go into direct capital expenditure. The remainder would flow into operating costs and related economic activity.
Shell is also reviewing additional opportunities, including Bonga South, which remains at an early development stage.
Sawan said the growing investment pipeline marks a clear shift from the past. Security concerns and fiscal uncertainty had previously forced Shell to scale back spending.
He credited recent government actions for reversing that trend. Clearer engagement and targeted incentives, he said, have improved project economics and restored investor confidence.
Government Approves Project-Linked Incentives
During the meeting, President Tinubu approved the gazetting of incentives tied to the Bonga Southwest project. He directed that they be implemented within Nigeria’s existing legal and fiscal frameworks.
The President said the incentives are project-specific, not blanket concessions. He explained that they aim to unlock new capital, raise production, strengthen local content, and expand in-country value creation.
“These incentives are ring-fenced and strictly tied to new investment,” Tinubu said. He added that the government expects the project to reach FID within his first term.
Tinubu also instructed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to coordinate the formal gazetting process.
Sawan praised the government’s energy team, describing its engagement as professional and effective. He said the approach has strengthened Shell’s confidence in Nigeria as a long-term investment destination.
He added that Shell’s partners share the same view, stressing that consistent policy execution remains critical to sustaining foreign investment into Nigeria’s energy sector.