Shell Plc has signalled a renewed and expanded investment push in Nigeria, announcing plans to invest up to $20 billion in the Bonga Southwest deep-offshore oil project, citing improved political stability, policy consistency, and leadership under President Bola Tinubu as key factors driving its confidence in the country’s energy sector.
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The Chief Executive Officer of Shell Plc, Wael Sawan, disclosed the company’s ambitious investment plans during a high-level meeting with President Tinubu in Abuja on Thursday, marking what could become one of the largest energy projects globally.
“We think there is more to invest here, and we understand the vision that you (President Bola Tinubu) have for the country, and so we are indeed working on a project, Bonga Southwest, that could potentially, if we get to an FID stage, see us, with the partners, invest around $20 billion in foreign direct investment,” Sawan stated.
The Shell CEO explained that the $20 billion investment would be split equally, with approximately $10 billion allocated to capital expenditure and another $10 billion designated for operating expenses and related activities that will flow into the Nigerian economy.
Sawan revealed that the company has commenced pre-Front-End Engineering Design (pre-FEED) work on the project, with the aim of fast-tracking it towards a Final Investment Decision (FID) by 2027, subject to regulatory approvals and finalisation of fiscal incentives.
Nigeria, he said, now stands out as one of the most attractive destinations for capital allocation within Shell’s global portfolio, a significant shift from previous years when the country struggled to attract major energy investments.
“We are very keen to invest in Nigeria. But I would say this has not always been the case,” Sawan candidly told the President, explaining that Tinubu’s leadership and vision have created an investment climate over the last few years that has propelled the company to prioritize Nigeria when comparing it with other investment destinations around the world.
The Shell executive emphasized that stability has become a premium factor for long-term energy investments, noting that the company typically plans projects spanning 20 to 40 years. Nigeria, he said, now ranks among the countries attracting more capital than most peers, largely due to recent reforms and governance improvements.
In the last 12 months alone, Sawan revealed that Shell has invested approximately $5 billion in the Bonga North project and an additional $2 billion in gas infrastructure supporting the Nigeria Liquefied Natural Gas (NLNG) project—bringing total investments to over $7 billion since President Tinubu announced investment incentives.
The company also deepened its interest in Oil Mining Lease (OML) 118 after acquiring assets previously held by TotalEnergies, demonstrating Shell’s growing commitment to expanding its Nigerian operations.
Beyond the Bonga Southwest project, Shell indicated interest in other prospective developments, including Bolia Chota and Mwadoro, as well as participation in Nigeria’s ongoing oil exploration licensing round.
NNPCL Group Chief Executive Officer, Bashir Bayo Ojulari, who spoke to State House correspondents after the meeting, emphasized the transformative economic impact of Shell’s investment commitment.
“When we talk about these big numbers, we need to clarify what they mean: more jobs from construction, giving Nigerians ample opportunities to participate. Most of our fabrication yards—closed for years due to a lack of projects—will come back to life. Nigerians have made huge investments in those yards, which have lain idle for far too long,” Ojulari explained.
He added that beyond the project construction phase, completion would mean employment for the next 20 to 25 years over the field’s operational life, with operating expenditure creating opportunities for suppliers of materials, manpower, and maintenance activities.
“It’s a huge undertaking, which is why Shell’s overall chairman came himself this time to make those commitments directly to Mr President,” the NNPCL boss stated.
Ojulari noted that Shell’s confidence stems not just from rhetoric but from tangible evidence of transparency and commitment to the President’s agenda that they “can touch and feel.”
Sawan praised Nigeria’s human capital, describing Nigerian professionals within Shell’s global operations as one of the company’s largest expatriate talent pools. Many of these professionals, he said, are expected to return home to contribute to national development as investment activities expand.
President Tinubu echoed this sentiment, noting that Nigeria’s greatest resource remains its people, and that developing local talent is critical to achieving long-term value from the country’s natural resources.
In his response, President Tinubu assured Shell of the federal government’s commitment to transparency, competitiveness, and policy consistency, stressing that Nigeria must actively compete with other oil-producing countries such as Guyana for global capital.
“There’s no better time to invest than now,” the President declared, pledging that all approved incentives would be delivered and applied consistently.
Shortly after the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support Shell’s proposed Bonga South West deep-offshore oil project and other similar offshore developments in the country.
The NNPCL CEO highlighted that in just one-and-a-half years, Shell had completed the transaction transferring its onshore Joint Venture assets to Renaissance, demonstrating to the world Tinubu’s commitment to enabling investor entry and exit.
“That brought confidence to the international community, including Shell. Having completed that divestment, Shell took a final investment decision of $5 billion for Bonga North development. Subsequently, they approved another $2 billion for the shallow-water feed for gas development,” Ojulari explained.
He emphasized that the economic climate established by President Tinubu’s administration had restored investor confidence, noting that Shell had also committed to pursuing another $20 billion in opportunities over the next couple of years.
While Shell’s renewed investment commitment represents a significant vote of confidence in Nigeria’s current economic direction, the company’s three-decade presence in the country has been marked by controversy.
Shell has been a dominant operator in Nigeria’s oil and gas industry, largely through its subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC). While its operations, concentrated in the Niger Delta, have generated significant revenue for the Nigerian government, they have also been linked to environmental degradation and social unrest, drawing sustained criticism, lawsuits, and international scrutiny.
The company has faced numerous lawsuits in UK and Dutch courts, resulting in landmark rulings holding it liable for environmental damage. In 2021, a Dutch court ordered Shell to pay compensation to Nigerian farmers, marking a significant, albeit late, accountability moment.
Investigations have found that several oil-producing communities, including Ogoniland, continue to suffer hydrocarbon pollution. Many residents, whose livelihoods depend on farming and fishing, have lost access to farmlands and waterways due to recurring oil spills from creeks and pipelines, often attributed to the negligence of oil companies.
As NNPCL serves as concession holder for Nigerian Production Sharing Contracts with international investors like Shell, Chevron, ExxonMobil, and TotalEnergies, Ojulari emphasized the corporation’s role in working with these companies and other parts of government to create solutions and proposals for approval.
“Our responsibility is to be the conscience of the government and Nigerians—ensuring the assumptions and promises made are correct and authentic. We’ve been doing that, and we hope to complete it soon, securing Mr President’s support for the final investment decision,” he stated.
Shell’s commitment, if fully realized, would represent one of the largest single foreign direct investments in Nigeria’s history and could signal a turning point in attracting major international capital to the country’s energy sector amid global competition for investment dollars.
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