Energy: Tinubu Unlocks Historic $20 Billion Investment with Shell

President Bola Ahmed Tinubu has reached a landmark agreement with Shell Petroleum Development Company, unlocking a historic $20 billion investment in Nigeria’s energy sector…

In a strategic move to transform the nation’s energy landscape, President Bola Tinubu officially approved targeted fiscal and regulatory incentives for the Bonga South West offshore oil project on January 23, 2026. This decision marks a major victory for Nigeria’s economic attractiveness.

A Major Win in Abuja

The decision follows a high-level summit in Abuja with Shell’s Global CEO, Wael Sawan. It represents a significant turning point for the Nigerian energy sector.

Key Highlights of the Announcement:

• Massive Investment: The project represents a total commitment of $20 billion (including $10 billion in direct capital), making it one of the largest active energy projects in the world.
• “Surgical” Government Support: Unlike broad past exemptions, Tinubu signed “ring-fenced” incentives. These are strictly tied to actual investment and incremental production, protecting state revenues while reassuring investors.
• Industrial Revival: This deal is expected to reopen numerous shipbuilding and industrial fabrication yards across Nigeria that have been dormant for years, creating thousands of skilled jobs for Nigerian youth.

Why This Matters

Beyond the numbers, this action demonstrates a commitment to political and fiscal stability. By setting a clear roadmap (with a Final Investment Decision expected by 2027), Tinubu is sending a strong signal to international markets: Nigeria is once again a competitive destination for foreign capital.

“These incentives are not blanket gifts. They are designed to attract new capital without compromising public finances,” the President stated during the signing ceremony.